Moody's: No change for Kaisa

Moody's investors Service said it sees no immediate impact on B1 corporate family rating and B2 senior unsecured bond rating on Kaisa Group Holdings Ltd. following news of its RMB 1.5 billion 8% convertible bond issue.

The proceeds will be used to finance the acquisition of new land bank in China and to finance real estate projects, Moody's said.

The company needs additional capital to fund its rapid growth plan, Moody's said.

The issue will strengthen Kaisa's liquidity and raise its cash balance, which will help it make its committed payments for the recently acquired land bank, the agency added.

This also reflects management's effort to secure near-term funding, given the government's tightening control measures on domestic bank lending to the property sector, Moody's said.

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