Two Chinese property developers plan to raise $5 bln in debt

Midea Real Estate Holding

15/11/2022 11:49

HONG KONG, Nov 15 (Reuters) - Property developers
Longfor Group Holdings Ltd  0960.HK  and Midea Real Estate
Holding Ltd  3990.HK  plan to raise a total of 35 billion yuan
($5 billion) in debt, China's National Association of Financial
Market Institutional Investors said.
    NAFMII, which has semi-official status under the auspices of
China's central bank, said that Longfor had completed the
registration for 20 billion yuan worth of debt, while it had
accepted an application by Midea to raise 15 billion yuan.
    The moves come after a plan to ease a liquidity crunch in
the property sector, outlined by Chinese regulators on Sunday,
which sent Chinese property stocks and bonds soaring on Monday.
    The latest support measures came as cash-strapped developers
struggle to tap sources of fresh funding to finish projects and
pay suppliers. Several developers have defaulted on their
offshore debt obligations over the past year.
    NAFMII said that as well as Longfor and Midea a number of
other private developers were preparing for bond issuance
registration in China's onshore market. It did not give details.
    Last week it said it would widen a programme to support
about 250 billion yuan ($34.5 billion) worth of debt offerings
by private firms.
    China's property sector, once a pillar of growth for the
world's second-largest economy, has slowed sharply this year as
the government sought to restrict excessive borrowing.
    The clampdown triggered falls in property sales and prices,
bond defaults and the suspension of construction, angering
homeowners who have threatened to stop mortgage payments.
($1 = 7.0330 Chinese yuan renminbi) 
 (Reporting by Sumeet Chatterjee; Editing by Alexander Smith)
 ((sumeet.chatterjee@thomsonreuters.com; +852 3462 7757;))