Top 10 real estate companies throw 52.1 billion yuan in financing in 3 days to relieve cash flow pressure by external blood transfusion
Since the beginning of March, more than 10 housing companies have launched financing plans in unison, attempting to raise money through a variety of domestic and foreign financing channels, and the total amount of proposed financing has soared.
According to incomplete statistics from the reporter of the Securities Daily, from March 1 to March 3, the top 10 housing companies including China Shipping, Xincheng Holdings, Capital Development Corporation, and Overseas Chinese City revealed financing plans through various channels, involving a total of 52.13 billion yuan. .
According to the "Securities Daily" reporter observation, from 270 days of short-term financing bonds to long-term bonds over 10 years, from a small-scale short-term emergency financing of 1 billion yuan to a long-term plan of planned additional financing of 30 billion yuan, we can see What's more, whether it is domestic or overseas, RMB or USD, rights issue financing or bond financing, real estate companies are accelerating the release of financing needs and filling cash flow reserves. It is worth mentioning that since February, RMB bonds have started to rise.
"Housing bonds issued by real estate companies usually appear around the Spring Festival. Since late January this year, affected by the new crown pneumonia epidemic, overseas capital markets have concerns about the withdrawal of funds from Chinese real estate companies. In February, the dollar debt of typical real estate companies fell month-on-month." Huang Lichong, President of International Finance, said in an interview with the Securities Daily reporter that these housing companies are moving to the domestic market. Policies such as easing domestic liquidity and falling interest rates on loans will help these housing companies issue "anti-epidemic (prevention and control) bonds" and corporate bonds. Wait, interest is cheaper and channels are more convenient.
Relieving funding pressure by external blood transfusion
In the first quarter, there was a blowout of financing by housing companies, which can be described as a "conventional action" in the industry, but this year is quite different. The second half of the year is the climax of repayment of large-scale corporate bonds issued by housing companies three or four years ago. In addition, affected by the new crown pneumonia epidemic, sales in February almost stopped, which is also a forced move for many housing companies busy with blood transfusion from external channels. In view of this, since the beginning of the year, there have been dozens of short-term financings in the capital market to solve short-term cash flow problems, and several long-term financing plans with a scale exceeding 10 billion yuan.
On March 3, it was reported that the board of directors of the New City Holding Group reviewed and approved 12 proposals, including proposals for additional financing scale. According to the news, Xincheng Holdings stated that in order to optimize the debt structure and reduce financing costs, it intends to use direct financing instruments at home and abroad to conduct financing work. The total amount of new financing will not exceed the equivalent of RMB 30 billion (including foreign equivalent foreign currencies).
On the same day, Yunnan Urban Investment announced that it plans to issue the third phase of 2020 ultra short-term financing bonds (debt prevention and control bonds) with a scale of 1 billion yuan and a term of 29 days. It is reported that the interest rate range is 3.3% to 3.4%. On the same day, according to the information disclosure of the Shanghai Clearing House, the Overseas Chinese Town Group plans to issue the second ultra short-term financing bonds in 2020, with a planned amount of 1.5 billion yuan and a period of 270 days. On the previous day, the “Small Public Offering” bond project previously planned to be issued by OCT Group had just changed to “accepted”.
As for the use of funds raised, a reporter from the Securities Daily looked at various announcements and found that it is nothing more than "repayment of financial institutions' loans, repayment of previously issued corporate bonds and interest, replenishment of working capital and general operating funds, etc." Take up a higher proportion.
Taking Wanda Commercial Management as an example, on February 28, the Shanghai Stock Exchange accepted Wanda Commercial Management's proposed small public debt offering of 9.8 billion yuan. According to the prospectus, the funds raised are intended to be used to pay off corporate bonds due, involving two corporate bonds due by Wanda Commercial Management in August and October this year.
The Shell Research Institute pointed out that out of 159 bond financings in the first two months of 2020, only one housing company's funds were used as "supplementary operating funds", and the remaining 158 financing uses involved all or part of the repayment of existing debt. . 2020 is the peak year for debt repayments of housing companies, with the epidemic effect superimposed, and debt refinancing pressure is expected to run throughout the year.
40 housing companies raised over RMB 168.3 billion in financing
The typical real estate company really prepares as early as possible.
"Securities Daily" learned from the financing monitoring data provided by the Tongce Research Institute that in the first two months of 2020, 40 typical listed housing companies completed a total of RMB 168.3 billion in financing. At the same time, since February, the amount of overseas financing has plummeted, indicating that overseas capital markets are concerned about the withdrawal of funds from Chinese housing companies affected by the new crown pneumonia epidemic. As a result, there has been a period of short-term domestic and overseas financing, but the financing cost has not significantly rising.
Among the 40 typical housing companies monitored by Tongce Research Institute, in February, the lowest financing cost was the two ultra short-term financing bonds issued by China Merchants Shekou, with financing costs of 2.7% and 2.65%. In addition, the first phase of the 1 billion yuan short-term financing bonds issued by Gemdale Group has a coupon rate of only 2.83%. The highest financing cost was the two overseas green senior notes issued by Contemporary Real Estate with financing amounts of US $ 200 million and US $ 150 million, with interest rates as high as 11.8% -11.85%.
In this regard, Chen Mimo, a researcher at the same policy research institute, said that on the whole, the financing costs of high-quality housing enterprises have declined, most of which are less than 6.5%, and the financing advantage is prominent under the severe financing environment.
Chen Mimo further stated that due to the impact of the epidemic, housing companies have slowed down land acquisition, delayed construction, and frozen sales, and their short-term operating cash flow has been eroded. Housing companies urgently need external financing to ease the huge funding pressure. Although policies such as easing liquidity and falling interest rates on loans will help ease the pressure on real estate financing, the financing window is only a short-term relaxation, which does not mean a long-term improvement in the real estate financing environment. In the short term, major housing companies should grasp the financing window, broaden financing channels, and make sufficient capital reserves for the future.
"With the domestic epidemic under control, the resumption of work and sales of housing companies has entered a normal phase, and this time the Fed's emergency interest rate cut, the overseas financing channels will resume." Zhang Hongwei, chief analyst of Tongce Group, accepted Securities Daily The reporter said in an interview that the cost of financing US dollar bonds has fallen, which will increase the attractiveness of housing companies.
Zhang Dawei, chief analyst of Central Plains Real Estate, emphasized to this reporter that "dollar debts are beneficial to alleviate the pressure on funds of some real estate enterprises, but it is difficult to become the main source of funds because of quotas. High-debt real estate enterprises cannot solve the fundamental problems by financing alone. In the long run, You also have to rely on sales proceeds. "(Securities Daily)
Our reporter Wang Lixin