There are signs of recovery in real estate financing. Recently, many real estate enterprises have shown signs of recovery in both financing amount and financing interest rate. The short-term interest rate of some real estate enterprises has been as low as about 3%, and the financing interest rate of some real estate enterprises has even dropped to 2.1%.
The financing interest rate of several real estate enterprises fell to about 3%
On April 15, according to the disclosure of Shangqing, Oct completed the issuance of 1.5 billion yuan of medium-term notes from April 13, 2022 to April 15, 2022, with a coupon rate of 3.42%. The name of the bonds is the third medium-term note of OCT Group Co., Ltd. in 2022. The bonds are divided into two types: one is with a term of 3 + n (3) years, and the initial issuance scale is 750 million yuan; The term of variety II is 5 + n (5) years, and the initial issuance scale is 750 million yuan. The value date is April 15, 2022.
On the same day, Bright Real Estate Group Co.Limited(600708) announced that the company received the notice of acceptance of registration issued by Bank Of China Limited(601988) inter market dealers association in February 2022. The company issued the first phase of ultra short-term financing bonds in 2022 from March 9 to 10, 2022, with a term of 180 days, a value date of March 11, 2022, a total amount of 600 million yuan and an issue interest rate of 3.5%. Since then, the company issued the second phase of ultra short-term financing bonds in 2022 from April 12 to 13, 2022, with a term of 180 days, an issuance interest rate of 3.06%, and the actual total amount of issuance was 800 million yuan.
The short-term interest rate of some real estate enterprises has been lower than 3% Beijing Electronic Zone High-Tech Group Co.Ltd(600658) issued the first phase of ultra short-term financing bonds in 2022 from April 11 to 12, 2022. The total amount actually issued was 700 million yuan, and the issue interest rate was 2.99% (Shibor + 0.49% nine months from the issue date).
Yuexiu group issued the seventh phase of ultra short term financing bonds in 2022 on April 12, with an amount of 1 billion yuan, a coupon rate of 2.1%, and an issuance period of 240 days. The bond is abbreviated as 22 Yuexiu group scp007, the bond code is 012281422, the value date is April 13, 2022, the bookkeeping Manager / lead underwriter is China Merchants Bank Co.Ltd(600036) , and the joint lead underwriter is Guangfa Bank Co., Ltd.
According to the data of China Index Research Institute, the average interest rate of credit bonds issued by real estate enterprises in March was 3.85%, a year-on-year decrease of 0.6 percentage points; The average interest rate of ABS was 3.74%, a year-on-year decrease of 0.8 percentage points. The average interest rate of trust financing is 7.66%. In terms of financing structure, in March, the scale of credit bonds accounted for 54.8%, overseas bonds accounted for 2.7%, trust financing accounted for 11.8%, and ABS financing accounted for 30.7%.
According to the real estate industry research report of Qi Dong, an analyst at open source securities, in the 15th week of 2022, the issuance of credit bonds was 5.19 billion yuan, a year-on-year decrease of 66%, a month on month increase of 284%, an average weighted interest rate of 3.09%, and a month on month decrease of 55bps.
The real estate industry may gradually bottom at the end of the second quarter
From the perspective of financing purpose, the repayment of early-stage loans is the main reason for recent financing. As mentioned above, according to the prospectus, the issuer issued 1.5 billion yuan of medium-term notes, all of which were used to repay the working capital loan of the issuer’s headquarters.
China Resources completed the issuance of 2 billion yuan of medium-term notes on April 13, 2022, with a coupon rate of 3.3%. The full name of the bond is the third medium-term note of China Resources Co., Ltd. in 2022, and the bond is referred to as 22 China Resources mtn003, with a bond term of 5 years. According to the prospectus, the issuer raised a total of 2 billion yuan from the current medium-term notes to repay the issuer’s bond “19 China Resources mtn004” due on April 24, 2022.
With the smooth financing channels, the financing scale of real estate enterprises has also increased significantly. In March, the amount of credit debt financing in the real estate industry increased by 100.2% month on month; The amount of trust financing increased by 11.9% month on month; The amount of ABS financing increased by 375.3% month on month.
In addition to the reduction of the financing interest rate of real estate enterprises, with the continuous reduction of LPR and the initiative of local banks to reduce the mortgage interest rate, the interest rate at the end of personal housing loans has also been significantly relaxed, and some banks have even realized the LPR interest rate for first tier cities.
Sinolink Securities Co.Ltd(600109) analyst Du Haomin said that the introduction of easing policies was accelerated and helped the industry gradually build a bottom. Recently, Chongqing, Suzhou, Nanjing, Kunming and other first and second tier cities and cities in the Yangtze River Delta have successively issued loose regulatory policies to support consumers to buy houses by relaxing purchase and sales restrictions, reducing the proportion of down payment, reducing mortgage interest rates and other measures; On April 15, the central bank announced to cut the deposit reserve ratio by 0.25 percentage points, and the action of steady growth continued to increase; From the changes in the sales price of commercial housing in 70 large and medium-sized cities in March 2022, although the number of cities with declining prices is still more than the number of cities with rising prices, the number of cities with declining prices has gradually decreased.
Du Haomin believes that with the help of the favorable policies already issued and the loose policies expected to be issued in the future, the real estate industry is expected to gradually bottom at the end of the second quarter. Local governments may bail out local high-quality private real estate enterprises. At present, although the loose regulation of the industry is accelerating, due to the lagging response of market sales, some real estate enterprises still face great financial pressure in the short term. It is expected that local governments will increase the rescue assistance to local high-quality real estate enterprises, or take measures such as directly issuing rescue funds, relaxing the supervision of pre-sale funds of real estate enterprises, coordinating resources to help real estate enterprises finance, joint development of state-owned assets at the project level and capital injection at the company level. On the one hand, the local government’s rescue assistance to high-quality private real estate enterprises can alleviate the short-term capital pressure of real estate enterprises, on the other hand, it can increase enterprise credit and ensure the safe and steady development of real estate enterprises. It is expected that the undervalued high-quality private real estate enterprises will gradually enter the valuation repair stage.
