Chinese developers continue to issue bonds both onshore and offshore this month with Jiangsu-based Future Holdings selling another $1 billion in bonds via offshore markets.
Two of the mainland’s more financially challenged builders this year also made their way into the capital market with Jiayuan International raising cash both domestically and in Germany after its stock plunged by 80 percent in January, and Sunshine City, which lost a major financial backer during 2019, announced a plan to sell RMB 900 million in short term paper.
All the highlights of China’s fund raising this past week are in Mingtiandi’s financial market digest.
On 17 April developer Future Holdings announced that it has gained approval from mainland authorities to issue $1 billion in offshore bonds through its subsidiary Seazen Holdings. The new notes will be issued through the company’s New Metro Global Limited unit with the net proceeds earmarked primarily for repayment of existing onshore and offshore debts.
The offshore bond issue plan comes after Future Holdings on 4 April, issued $2 billion in senior notes at an interest rate of 6.15 percent. The accumulated debt balance of Future Holdings incurred in the first quarter of 2019 reached RMB 16.17 billion — equivalent to 31.73 percent of its RMB 50.96 in net proceeds during all of 2018. Read more>>
Developer Greentown China Holdings said in an announcement to the Shanghai Clearing House on April 18th that it will issue at least RMB 1.3 billion, and up to RMB 2.6 billion in medium-term bonds.
The debt sale is the second phase of a plan previously approved by regulators and each new note will have a face value of RMB 100 each, with net proceeds to be used primarily for repaying existing debts. The first phase of the debt issue had been issued on 22 January. Read more>>
Hong Kong-listed developer Jiayuan International announced on 23 April that it has reached an agreement with a number of mainland financial institutions to gain access to a RMB 43 billion credit facility. The developer, which in January saw its stock price drop by 80 percent in a single week also unveiled plans for a $225 million private placement of notes.
Jiayuan said that its line of credit was sourced via Baoshang Bank Co, Ltd, Daye Trust Co, Ltd, Guotong Trust Co, Ltd and AVIC Trust Co, Ltd. The privately placed bond was being sold in Frankfurt, Germany.
The developer’s stock was suspended from trading in January after the company’s chairman, Shum Tin Ching and his wife Wang Xinmei reduced their combined shareholding to 53.92 percent from 57.65 percent in a single day. Read more>>
Times China Holdings announced on 18 April that it intends to raise HK$1.55 billion in capital through a sale of 108 million shares in the company held by vehicles controlled by its chairman Shum Chiu Hung and his wife Li Yiping.
In the announcement Times China said that it has entered agreements with JP Morgan and Citi Group as placing agents, and with the companies controlled by Shum and Li as vendors, to sell the equity at HK$14.54 per share. The net proceeds of the sale are to be used by the company to support its corporate development and for general working capital, according to the announcement. Read more>>
Shenzhen-listed developer Sunshine City Group announced on 17 April that it will issue short term notes totalling RMB 900 million, according to an announcement posted on the Shanghai Clearing House.
The notes, which represent the first phase of a plan approved by financial regulators, carry a face value of RMB 100 at interest rates said to be between 6 and 7 percent. The notes have a term of one year to maturity.
Sunshine 100, also known as Yango City Group, has struggled this year after its major financial backer, China Minsheng Investment Group (CMIG) became mired in a corruption scandal. Read more>>