On June 10, the real estate asset management information service platform (CAIC) released data showing that in May, real estate companies issued about 59 billion yuan in bonds at home and abroad, a slight increase of 4.8% year-on-year and a sharp drop of 38.2% from the previous month.
Among them, the number of real estate companies issuing bonds is 45, which is only half of the number issued in April.
Although the overall financing of the real estate industry is tightening under the "three red lines" policy, real estate companies are still actively seizing the window and arranging financing.
A few days ago, there was market news that Aoyuan Group Co., Ltd. plans to issue a new phase of corporate bonds in the near future, with a scale of no more than 1.82 billion yuan.
In addition, affected by negative news such as the failure to redeem the leading real estate companies' commercial bills, the recent negative sentiment in the capital market has become stronger, which has transmitted to the real estate companies' dollar bond market price fluctuations.
A person familiar with the matter disclosed that the news of actively repurchasing US dollar bonds has boosted investor confidence. While the bond prices of peers with other 100 billion-level real estate companies continue to fall, Aoyuan's US dollar bond prices have gradually stabilized.
It is also understood that United Ratings has just confirmed the domestic AAA rating of Aoyuan Group, and the company has also confirmed it.
In fact, since the release of the "three red lines" in the second half of last year, the regulation of financing for real estate enterprises has continued to increase.
According to a report from China Business News, more than half of real estate companies are still financing-driven. With the tightening of the financing environment, diversifying financing channels and optimizing their debt structure in the future are the keys to smooth financing and reducing financing costs.
According to the management of China Aoyuan, since the beginning of this year, China Aoyuan has actively managed the company's debt, arranged refinancing in advance, and further optimized the debt structure.
Previously, in March and May, China Aoyuan was granted two rounds of three-year overseas syndicated loans totaling more than HK$2.1 billion, based on Hong Kong Interbank Offered Rate (HIBOR)/London Interbank Offered Rate (LIBOR) plus 4.30% annual interest rate. To complete the refinancing of the syndicated loan.
On May 10, China Aoyuan redeemed the US$425 million 7.5% senior notes due in May 2021 on time. Together with the redemption, China Aoyuan fully redeemed three publicly offered overseas senior notes due within this year.
In addition, in January and February this year, China Aoyuan issued a 4.2% senior note due 2022 and a 6-year US$350 million 5.88% senior note respectively.
In response to the news that Fitch has confirmed that Aoyuan’s main BB rating has changed from stable to negative, China Aoyuan said in response to the media: “The company’s business is progressing normally. We expect various credit indicators for the end of the first half of 2021. There will be further improvements compared to the end of 2020. The company’s management will also consider raising credit indicators and improving ratings as one of the important tasks. United Ratings has just confirmed the domestic AAA rating of Aoyuan Group."
According to the monthly sales announcement issued in early June, from January to May this year, China Aoyuan completed sales of 52.57 billion yuan, a year-on-year increase of 58%.
According to data from the 2020 annual report, China Aoyuan’s operating income was 67.902 billion yuan, a year-on-year increase of 34%.
As of the end of 2020, China Aoyuan’s asset-liability ratio, net debt ratio, and cash short-term debt ratio after excluding advance receipts were 78%, 82.7%, and 1.3 times respectively. The asset-liability ratio after only excluding advance receipts failed to meet the standard, which belongs to " "Yellow files" housing enterprises.