AsianFin -- Greentown China Holdings Ltd. is marketing a U.S. dollar bond to refinance debt, marking the first major offshore bond issuance by a Chinese developer in nearly two years.

The Zhejiang-based builder is offering a three-year note, callable after two years, with an initial yield guidance of approximately 8.85%. The bond pricing could be finalized as early as Thursday, though the offering remains subject to market conditions, according to a filing with the Hong Kong exchange.

Like China Vanke Co., which is expected to receive government support for debt relief, Greentown also benefits from a state-backed connection. China Communications Construction Group holds a 29% stake in the company, based on recent filings.

The deal signals tentative recovery efforts in China’s troubled real estate sector following government intervention, even as distressed debt continues to mount and home sales stagnate.

Due to challenging market conditions, Chinese property firms have largely avoided offshore bond issuances in recent years. According to Bloomberg data, the last such issuer was Dalian Wanda Group Co.’s property management arm, which sold two dollar-denominated notes in early 2023.