0 Since late August, the financing environment of real estate companies has become warmer. Real estate companies such as Longfor Group, Xincheng Holdings, Country Garden , and Xuhui Holdings Group have successively issued medium-term notes for guaranteed guarantees, bringing positive signals to industry financing.
According to the Shanghai Clearing House, on August 25, Chongqing Longhu Enterprise Development Co., Ltd. issued the first medium-term notes for 2022, with an issuance amount of 1.5 billion yuan and a face interest rate of 3.3%. On September 16, Country Garden Real Estate Group Co., Ltd. completed the bookkeeping of the first mid-term notes in 2022, with an issuance amount of 1.5 billion yuan, a term of 3 years, and the final face interest rate was 3.2%. Full unconditional and irrevocable joint and several liability guarantee provided by China Bond Credit Enhancement Investment Co., Ltd. .
Recently, news has been reported again on the second round of credit financing. Market news shows that Longfor Group, Country Garden, Xincheng Holdings, and Xuhui Group are promoting the second round of bond issuances fully guaranteed by China Bond Corporation.
On October 19, it was reported that Xincheng Holdings is planning to issue 1.5 billion yuan of domestic bonds fully guaranteed by China Bond Credit Corporation. Previously, on September 9, Xincheng Holdings had successfully issued 1 billion yuan of medium-term notes. This period of notes was provided by China Bond Credit Company with a full unconditional and irrevocable joint and several liability guarantee.
In addition, Xuhui Holdings Group (00884.HK) intends to issue bonds fully guaranteed by China Bond Credit Enhancement Company , with an amount not exceeding 1 billion yuan. On September 21, Xuhui Holdings Group announced that its wholly-owned subsidiary Xuhui Group Co., Ltd. has completed the second phase of medium-term notes bookkeeping and filing work in 2022, with an issuance scale of 1.2 billion yuan, an issuance period of 3 years, a face interest rate of 3.22%, and a full subscription multiple of 2.64 times.
On October 13, Excellent Commercial successfully issued 600 million yuan in medium notes, with full guarantee provided by China Bond Zengjin Company, becoming a company that was not on the pilot list but successfully issued bonds. So far, China Bond Zenggong Company has increased its credit support to 6 private real estate companies to issue 8 debt financing instruments, with a total amount of 8.368 billion yuan.
China Bond Credit Enhancement Company has obtained a single entity concentration regulatory exemption, which means that supervision continues to support leading private real estate companies to issue bonds, allowing China Bond Increase to be not subject to the supervision of single entity concentration, that is, private enterprises that have issued credit enhancement bonds do not have to worry about limiting their quota, and have the opportunity to refinancing through new issuance within the year.
In the financing environment that has significantly cooled down in the first half of the year, real estate companies’ credit enhancement and issuance of bonds has brought long-lost positive signals to the industry.
In the context of slow sales recovery and peak debt repayment, if the second round of credit-increasing financing progresses smoothly, it will have a positive effect on real estate companies' supplementary liquidity and rebounding industry confidence.
