FINANCE

Chinese Developer to Pay 13% Yield on New Dollar Bond to Lure Wary Investors

Published: Sep. 25, 2025 11:48 a.m. GMT+8

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Hong Kong-listed Seazen Group Ltd. plans to issue a high-yield U.S. dollar bond, its second attempt in 2025 to tap the offshore debt market at a steep price, testing investor appetite for risky Chinese property debt.

The property developer’s subsidiary, New Metro Global Ltd., intends to issue $160 million in two-year senior notes with an 11.88% coupon, according to a Sept. 23 company filing. The notes, planned for issuance on Sept. 30, will be offered at a discount of 98.082% of their face value, bringing the actual yield to around 13%, Caixin has learned from sources with knowledge of the matter.

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Seazen Group plans to issue $160 million in two-year U.S. dollar bonds at an 11.88% coupon (~13% yield), far above the 4.6% market average, to refinance debt.
The issuance tests investor appetite for risky Chinese property bonds; Seazen’s “B-” rating signals high default risk and weak market confidence persists since the 2021 sector crisis.
Seazen’s finances remain strained: by June 2025, its cash reserves were insufficient to cover its $1.9 billion short-term debt.

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Who’s Who

Seazen Group Ltd.: Seazen Group Ltd. (新城发展控股有限公司) is a property developer listed in Hong Kong. It aims to issue a $160 million high-yield U.S. dollar bond with a 11.88% coupon, testing investor appetite for risky Chinese property debt. This is its second attempt in 2025 to tap the offshore debt market, following a $300 million bond in June with a 12.95% yield. S&P Global Ratings has assigned a "B-" long-term rating to its proposed notes, indicating high default risk.

Seazen Holdings Co. Ltd.: Seazen Holdings Co. Ltd. is the operational and financing arm of Seazen Group Ltd. on the Chinese mainland, with an average financing cost of 5.55% as of June 2025. It faces significant debt, with 13.6 billion yuan due within a year against 9.2 billion yuan in cash and equivalents.

New Metro Global Ltd.: New Metro Global Ltd. is a subsidiary of Seazen Group Ltd. It plans to issue $160 million in two-year senior notes with an 11.88% coupon, testing investor appetite for risky Chinese property debt. This marks their second attempt in 2025 to secure offshore debt financing.

Fantasia Holdings Group Co. Ltd.: Fantasia Holdings Group Co. Ltd. is a Chinese property developer. Its surprise default in October 2021 triggered a wave of collapses, effectively shutting down international refinancing channels for Chinese developers.

Wanda Group: Wanda Group attempted to re-open the international debt markets for Chinese developers in early 2023. However, this attempt faltered as investor sentiment cooled. This suggests that despite being a significant player, Wanda Group was unable to single-handedly restore confidence in the Chinese property sector's offshore debt market.

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What Happened When

Late 2021：: A sector-wide credit crisis began among Chinese private developers, freezing them out of international debt markets.

October 2021：: International refinancing channels for Chinese developers effectively closed after the surprise default of Fantasia Holdings Group Co. Ltd.

Early 2023：: Wanda Group attempted to reopen the international debt market for Chinese developers, but the attempt faltered.

June 2025：: Seazen became the first private developer to restart offshore refinancing since October 2021 by issuing a $300 million bond, with an actual yield of around 12.95%.

As of end of June 2025：: Seazen Holdings' average financing cost was 5.55%, and it had about 13.6 billion yuan in interest-bearing debt due within a year.