Private company to sell bonds
28 September 2005
Fosun Group, one of the largest privately owned conglomerates in China, is tapping the international debt market for the first time by selling US$500 million worth of high-yield bonds, the Standard of Hong Kong reported, citing sources close to the deal. The company, parent of Hong Kong-listed Shanghai Forted Land, has hired Morgan Stanley and Citigroup to be joint arrangers of the seven-year fixed-rate bonds. Some market observers believe the deal will set the benchmark for debt sales by private mainland companies, which usually struggle to attract international investors due to poor transparency and corporate governance.