In order to boost the confidence of the capital market, some real estate enterprises have recently carried out bond repurchase.
On February 6, Seazen Holdings Co.Ltd(601155) issued an announcement on early redemption of overseas US dollar bonds. According to the announcement, Seazen Holdings Co.Ltd(601155) the current US dollar bond has a duration of US $200 million and will expire on March 20, 2022.
The announcement shows that the source of funds for this redemption is the company's own funds.
Seazen Holdings Co.Ltd(601155) said that in order to promote the long-term and stable development of the company, based on the confidence in its own value and future development, and in combination with the current actual operation and financial situation, the company plans to redeem the above US dollar bonds in advance and cancel them.
Country garden is also repurchasing bonds.
Country garden repurchased bonds several times at the beginning of this year. The announcement shows that since January 18 and as of February 4, country garden has further repurchased $6 million of senior notes in the open market, and 4.75% of the notes due in July 2022 will be cancelled. In addition, since December 30 and as of February 4, country garden has bought back senior notes with a total principal of US $30.1 million.
Country garden said that the company would continue to monitor the market conditions and further repurchase the senior notes at an appropriate time.
Huang Lichong, President of Huisheng international financing, said that the early repurchase of domestic foreign debt by real estate enterprises is intended to boost market confidence and maintain their own bond prices, so as not to be in a disadvantageous position when issuing bonds due to the decline of bond prices or negotiating the extension of bonds.
In 2022, the overseas debt repayment pressure of real estate enterprises is high, and many real estate enterprises frequently repurchase bonds in advance, releasing positive signals from enterprises to avoid being continuously affected by the fluctuation caused by the debt pressure of other enterprises.
According to incomplete statistics, in January alone, real estate enterprises such as Greentown China, times China Holdings, Zhongliang holdings, Jinhui holdings, Xuhui holdings and Longguang group repurchased bills. At the same time, a number of real estate enterprises, including R & F, Rongsheng, Dafa, Xuhui, Zhongjun, Baolong and Shangkun, realized the dollar debt exchange offer on the basis of the original stock debt, and the debt was extended.
Since 2017, overseas bond issuance has gradually become an important financing method for real estate enterprises.
According to Kerui's research data, in 2019, 100 real estate enterprises reached a peak in overseas bond issuance, with a financing scale of about 505.2 billion yuan, accounting for 64% of the total bond issuance scale. In 2020, the financing scale of overseas bond issuance of real estate enterprises was about 399.8 billion yuan, accounting for 47% of the total scale of bond issuance. In the first nine months of 2021, the overseas bond issuance scale of real estate enterprises was about 237.9 billion yuan, accounting for 44% of the total bond issuance scale. The scale of overseas bond issuance was further tightened.
According to the data, from the maturity balance of overseas foreign debt of real estate enterprises, 2022-2025 is the peak period of US dollar debt cashing. In particular, 2022 will be the year with the greatest debt repayment pressure for real estate enterprises in the next four years.
At present, real estate enterprises want to alleviate the debt pressure. In addition to selling assets and repurchase bonds, the most important thing is the sales situation.
The monitoring of China Index Research Institute found that during the Spring Festival in 2022 (from January 31 to February 6), the transaction area of new commercial houses in key monitoring cities decreased by 51% compared with last year's Spring Festival. Among them, the transaction scale of first tier representative cities increased compared with last year's Spring Festival, and that of second tier representative cities decreased by about 50% compared with last year's Spring Festival.
Chen Wenjing, deputy director of the index division of China Index Research Institute, pointed out that in 2022, the local spring festival property market "does not close", but in the overall market environment, the tide of home buyers in small and medium-sized cities is still relatively low, and buyers are not active in big cities under the "local Spring Festival".
