Chinese developers are being shut out of international debt markets as the crisis at Evergrande continues.
Just one developer has managed to tap overseas bond investors since Evergrande, the world’s most indebted real estate group, missed an $83.5m interest payment last month.
The $102m bond sale by Helenbergh China Holdings this month has done little to address huge funding shortfalls among heavily leveraged property groups. Issuance of high-yield dollar debt is down 28% from a year ago, according to data from Dealogic.
“The market really has turned quite gloomy,” said a senior debt capital markets banker at one European bank, who estimated that a third of the approximately 60 Chinese developers with outstanding dollar debt could end up permanently frozen out of international finance, further weakening deal flow.
