On March 21, Shanghai Jinmao Investment Management Group Co., Ltd. (hereinafter referred to as "Shanghai Jinmao") and China Railway Construction Corporation Limited(601186) Real Estate Group Co., Ltd. (hereinafter referred to as "railway construction real estate") respectively announced on the Shanghai stock exchange that they would book and issue corporate bonds with the theme of M & A in the real estate industry.
According to the announcement, Shanghai Jinmao will book issue corporate bonds (phase II) of Shanghai Jinmao Investment Management Group Co., Ltd. to professional investors in 2022 on March 23. The issuance scale of corporate bonds with the theme of M & A in the real estate industry to be bookkept this time is no more than 1.5 billion yuan (including 1.5 billion yuan), of which 1.1 billion yuan is planned to be used to support enterprises with strong synergy in the industry to alleviate liquidity pressure. The issuance of this bond will provide stable medium and long-term financial support and high-quality project reserves for the future business development of the enterprise, make the enterprise more capable of facing various challenges of the market and give full play to its experience in urban operation, residential development and property holding operation.
Railway construction real estate announced that China Railway Construction Corporation Limited(601186) Real Estate Group Co., Ltd. will issue corporate bonds (phase III) (specially for M & A) to professional investors in 2022 on March 25, 2022. The term is 3 + 2 years, and the raised funds are mainly used for M & a real estate projects. This is one of the important measures taken by enterprises to actively respond to the recent decision of the financial commission of the State Council and the China Securities Regulatory Commission to effectively resolve the risks of real estate enterprises and maintain the stability of the real estate market.
Since the second half of 2021, the risks of individual real estate enterprises have gradually become explicit. Affected by this, the market expectation is unstable, and the risk aversion of various subjects in the real estate market has increased, which has brought certain unstable factors to the stable and healthy development of the whole market. On March 16, 2022, the financial stability and Development Commission of the State Council held a special meeting to study the current economic situation and capital market problems. Among them, the real estate enterprises are required to timely study and put forward effective risk prevention and resolution solutions, and put forward supporting measures for the transformation to a new development model.
According to the reporter, since the special meeting of the financial stability and Development Committee of the State Council was held on March 16, the Shanghai Stock Exchange has actively implemented the spirit of the instructions of the Party Central Committee and the State Council, responded quickly and made an overall plan, guided and supported qualified real estate enterprises, supported enterprises with strong coordination in the industry through issuing corporate bonds, alleviated liquidity pressure, and helped the virtuous circle and healthy development of the real estate industry, We will strive to promote economic restructuring.
The main underwriters of the two real estate M & a theme corporate bonds are China Securities Co.Ltd(601066) securities and Huatai United Securities respectively China Securities Co.Ltd(601066) securities related persons told reporters that in the issuance of Shanghai Jinmao corporate bonds, the Shanghai Stock Exchange arranged special personnel for guidance, provided "whole process" services, and opened a "green channel" for the project. In the future, China Securities Co.Ltd(601066) will continue to earnestly implement the deployment of the central economic work conference and the national "two sessions", closely follow the theme of promoting high-quality development, further promote the issuance of qualified corporate bonds with the theme of M & A in the real estate industry, and maintain and support the smooth operation of the capital market.
Huatai United Securities, the lead underwriter of railway construction real estate, expressed its gratitude to the Shanghai stock exchange for its key guidance in the application and issuance of railway construction real estate company bonds, which provided strong support for the successful issuance of bonds. Subsequently, under the guidance and support of the CSRC and the Shanghai Stock Exchange, Huatai United Securities will also make a positive contribution to the practice of market issuers to effectively resolve the risks of real estate enterprises and the financing needs of the transformation of the new development model of real estate enterprises.
