(Bloomberg) -- Greentown China Holdings Ltd. is marketing a dollar bond to refinance debt, the first deal from a major Chinese builder in around two years.

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The Zhejiang-based company is offering a three-year note, callable after two years, with initial guidance for the yield set at around 8.85%. Pricing of the deal may occur as early as Thursday. Completing the proposed offering is subject to market conditions, according to its filing with the Hong Kong exchange.

Like China Vanke Co., which is poised to receive support by government authorities for some breathing room in repaying its debt, Greentown is also linked to a state-owned company. China Communications Construction Group owns about 29% of Greentown, according to Greentown’s recent filings.

The deal is the latest sign that the industry is looking to get back on its feet after government intervention, while distressed debt piles up and home sales fizzle.

Given such signs, real estate companies have avoided issuing bonds offshore in recent years. Dalian Wanda Group Co.’s property management arm was the last dollar issuer from the sector, according to Bloomberg-compiled data. The company sold two such notes in early 2023.

“We like the deal as Greentown is a rare high quality China property issuer that is still with solid funding channels and decent operations,” Iris Chen, a credit desk analyst at Nomura International HK Ltd., said.

Greentown’s $446.5 million bond due in April this year and the $294.5 million note maturing in July 2025, both priced at par, traded well above 99 cents to the dollar on Feb. 12, according to Bloomberg-compiled prices.

Chinese authorities are looking to stem the sector’s liquidity crunch. In recent weeks, they’ve been working on a proposal to help Vanke plug a funding gap of about 50 billion yuan ($6.8 billion) this year, Bloomberg reported. Vanke also received a 2.8 billion yuan loan from its largest state-owned shareholder, Shenzhen Metro Group Co.

--With assistance from Alice Huang and Trista Xinyi Luo.

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