In less than a month, the National Development and Reform Commission of China approved more than 10 real estate enterprises such as Sunac, Vanke and Huayuan to register overseas bonds.
Wind financial data shows that as of May 22, 20 18, mainland real estate enterprises have announced plans to issue 6 1 overseas bonds since 20 18, with a total issuance of more than US$ 24 billion, a substantial increase of about 105% compared with the same period last year.
Recently, the China government has stepped up its efforts to regulate and stabilize the real estate market, and the tightening of credit policy has made it more and more difficult for real estate enterprises to raise funds.
Especially in the past two years, the financing of housing enterprises has been in a state of tension, and there are constantly housing enterprises exploding the risk of debt default, which leads the regulatory authorities to be more cautious about the audit of housing enterprises issuing bonds.
According to the information of the Shanghai Stock Exchange, the non-public issuance of corporate bonds was "suspended" in 20 18, and the amount of bonds to be issued in this period is 3 1 100 million yuan; On the 28th, Country Garden plans to issue 20 billion yuan of public debt, and the status is also shown as "suspended".
What makes the market nervous is the recent frequent bond defaults. Since 20 18, there have been 2 1 default events in the bond market, of which 10 occurred in less than one month. Frequent breach of contract has aroused concern and worry from the outside world, making it more difficult for mainland enterprises to issue bonds.
In addition, in order to reduce the leverage ratio and promote the high-quality economic transformation and development, the China municipal government has increasingly increased the task of resolving debt risks in various places, further tightening local platform financing, which has intensified the financial pressure of real estate enterprises, especially small and medium-sized housing enterprises.
Shenzhen Huake Financial Holding Group is a multinational financial service group focusing on helping mainland enterprises in China to issue bonds overseas. Song Jie, Chairman of the Board of Directors, said in an interview that apart from the tightening of credit in the Mainland, the two advantages of issuing bonds overseas have also attracted China real estate enterprises.
First, there are few restrictions. When an enterprise issues bonds in the Mainland, there are often relatively strict regulations on its organizational form, issuer's assets and operating conditions. Overseas bond issuance is more relaxed, and enterprises only need to meet basic financial requirements and complete information disclosure.
Second, overseas bond issuance has a short time and high efficiency. Song Jie said that the approval time of the relevant departments of issuing bonds in the mainland generally takes at least three months to complete, and it takes about eight weeks overseas; The process of issuing bonds overseas is relatively simple, which can effectively improve the efficiency of fund raising. This is especially critical for China real estate enterprises that are in urgent need of funds.
Wind financial data shows that in the second half of 20 18, the maturity scale of China real estate overseas financing bonds is at the level of 56.475 billion yuan, which is 2014,369.5 billion yuan.
It can be predicted that 20 18 will be a year of centralized payment of US dollar debts of Chinese housing enterprises. Zhang Dawei, chief analyst of Zhongyuan Real Estate, believes that with the approaching of the day when real estate enterprises pay back a large amount of money, real estate enterprises urgently need to issue bonds overseas, and the demand for overseas bonds will continue to increase in the future.
Song Jie reminded China real estate enterprises that they should arrange the bond issuance cycle, and issuing too many bonds will increase their debt ratio. If they don't do what they can, their overall solvency will be challenged, and even they will default, resulting in serious consequences.
"No matter what kind of bond issuance path, it is a debt, and it must be repaid when it expires." Song Jie said that it is also the key for real estate enterprises to blindly pursue the success of issuing bonds, while ignoring whether issuing bonds matches their own profitability and digestion. In order to realize the smooth transition in the past, real estate enterprises should also optimize bond varieties, sort out the stock and find a breakthrough in structured non-standard products, which is the best policy.
Song Jie said that the overseas issuance of bonds by China real estate enterprises has recently been restricted by the regulatory authorities. Recently, the National Development and Reform Commission of China and the Ministry of Finance jointly issued the Notice on Perfecting the Market Constraint Mechanism to Prevent Foreign Debt Risks and Local Debt Risks, which prohibits enterprises from asking or accepting local governments and their subordinate departments to provide guarantees or assume debt repayment responsibilities for their market-oriented financing activities in various names, and earnestly "whoever borrows, who lends and who pays back, makes prudent decisions and bears the risks".
Content source: Phoenix Net