SOHO China launches $1b US bond

SOHO China Ltd, a Hong Kong-listed property developer focusing on commercial real estate, has raised $1 billion via selling a US dollar bond in two tranches, it said late on Thursday.

The company raised $600 million via the 10-year tranche that was priced to yield 5.75 percent, and $400 million via the five-year tranche that had a yield of 7.125 percent, according to the statement.

It will use the net proceeds for general corporate purposes and some temporary cash investments, it said.

“The successful issue of the US bond will help us to finish our transformation to hold properties instead of cash,” said Pan Shiyi, chairman of SOHO China.

The company used to take a quick sale approach when developing commercial projects such as Galaxy SOHO and Jianwai SOHO, thus cashing in quickly. But now it prefers to hold assets itself.