Several Chinese property developers including Longfor Group and County Garden are planning another round of onshore bond issuance with guarantee in full amount by s state-owned credit enhancement institution, reported by Chinese news outlet The Paper on Tuesday.Â
Earlier this year, Chinese regulators instructed state-owned China Bond Insurance Co. Ltd. to provide guarantees for onshore bond issuance by a few private property developers including Longfor Group and CIFI Holdings in a move to help ease the cash crunch faced by the struggling sector.
According to data from the Shanghai Clearing House, Chongqing Longhu Enterprise Development Co., Ltd, a subsidiary of Longfor Group, issued 1.5 billion yuan of medium-term notes in August, at a coupon rate of 3.3%, and Country Garden Real Estate Group Co. Ltd, a subsidiary of Country Garden, issued 1.5 billion yuan of three-year medium-term notes at a coupon rate of 3.2%.
Seazen Holdings plans to issue 1.5 billion yuan of onshore bond with guarantee in full amount, according to the report on Tuesday.
If successful, that would be Seazen’s third bond issuance this year after the issuance of 1 billion yuan of three-year medium-term notes in September, at a coupon rate of 3.28% and the issuance of 1 billion yuan bond in May.
CIFI Holdings also considers issuing anther no more than 1 billion yuan of onshore bonds with such guarantee, per the report.
Earlier, the developer said on September 21 that it had issued 1.2 billion yuan of three-year note with such guarantee, at a coupon rate of 3.22%.
In addition, developers including Radiance Group and KWG Group are also considering the type of bond issuance, per the report.
