An upcoming commercial mortgage-backed securitization originated by Hong Kong property developer Chinese Estates Holdings will be denominated in Hong Kong dollars and placed domestically, according to local sources.

The HK$1.8 billion (US$232 million) transaction, arranged by SG Asia, is backed by rental income from Evergo House and Windsor House, two retail and office spaces in Hong Kong. Moody's has reportedly assigned it provisional ratings. Initial price talk on the issue is 140 basis points over Hibor for the triple-A tranche, 180 basis points over for the double-A tranche, and 240 basis points over for the single-A tranche.

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