Investors enthusiastically buy USD bonds, leading to oversubscription by 3.3 times
It is known that investors enthusiastically purchased the bonds shortly after the transaction announcement. The subscription increased at a fast pace and exceeded US$600 million only two hours after bookkeeping began, ending up with US$1.3 billion and oversubscription by 3.3 times, 87% of which were subscribed by well-managed asset management companies and funds.
Dalian Wanda’s successful issuance of low-interest USD bonds evidenced that its business model and operational capabilities are recognised by international investors, remarked an international investment bank analyst, who added that this is not only helpful for the company to further expand its business in the domestic commercial property market, but has also reinforced the company’s persistently positive image in the overseas bond market.
The company’s issuance of low-interest USD bonds also proved it has relatively sound liquidity and solvency. Up to the middle of 2019, the company had RMB62.675 billion in cash, in the first half of this year, its net profit reached RMB10.018 billion.
Wanda plazas to quicken expansion by adding 50 malls next year
Among the company’s premium core properties, Wanda plazas have been steadily increasing in number. On 29 November, the 300th Wanda plaza was opened in the city of Xianning in Hubei Province; by the end of this year, the number of opened Wanda plazas is expected to reach 323, scattered in first- to fourth-tier cities across China. Next year, the expansion of Wanda plazas will further accelerate, opening an estimated 50 Wanda plazas, increasing the total number of opened Wanda plazas to nearly 370 by end-2020.
Statistics showed that between September 2018 and August 2019, the existing Wanda plazas have served a total of 4.1 billion individuals, provided parking services for 270 million private vehicles, and brought in more than 10 billion customers who spent over RMB250 billion in more than 53,000 shops, nearing 1% of China’s total offline retail consumption.
Just as various property businesses struggled financially in financial winter, Dalian Wanda issued USD bonds and continued to grow its commercial empire. In the future, with strong support from the capital market, the company will continue to work on its business and will definitely create a win-win situation for both the property industry and capital market.
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