Evergrande again sends 600 million US dollar bills inside housing stock Hong Kong issued a debt tide again

Check the latest quotes Tan The surge in Hong Kong's debt financing for mainland property developers seems to be brewing as banks tighten lending gradually. In the early morning of April 14, Evergrande (03333.HK) announced that harbour Mini-advertisements 2¥q and chairman of Chinese estates, Lau, a wholly owned subsidiary of the Hong Kong Real Estate Company (00127.HK), Issue 350 million USD and 250 million USD additional priority paper, which expires in 2015 with an annual interest rate of 13%.　　When Evergrande was listed in Hong Kong last November, Chinese estates were one of the foundation investors who subscribed for 50 million of dollars in new shares. Evergrande's net contribution to the issuance of additional bills is about USD 585 million, which is planned to be financed from existing and new property projects.　　Sun Hung Kai Investment Services Limited is the arrangement and settlement agent of this transaction. On the same day, Hang Shing Real Estate (00845.HK) also announced plans to issue bills, the specific pricing arrangements for the bill was subsequently determined.　　One weeks ago, another private developer, Garden (02007.HK), had announced the preparation of an international issue of seven-year priority paper. This is somewhat of a "duplicity" of the meaning. On the one hand, a number of mainland developers in the 09 annual performance meeting have said that the hands of ample funds, this year will be the fist building sales.　　On the other hand, they are also doing well in raising debt abroad.　　14th, Jingzhang, an analyst with Nomura International (Hong Kong) Limited, told our correspondent that since the recent financing channels in the mainland were hampered by policy regulation and the prices of new shares in the Hong Kong market were not ideal, property companies would prefer to issue bills. "There is a higher rate of bond issuance in Hong Kong, but because of the issue of dollar bills, the market is expected to appreciate the renminbi, and if those bills were to be repaid five years later, the interest rate would not actually be 13% that high."　　"Jingzhang said.　　Evergrande is a bad money? This is the second time in Evergrande this year. As early as January 22 this year, Evergrande announced the completion of the issuance of 750 million U.S. dollars of 5-year priority paper, the annual interest rate is also 13%, set the mainland in Hong Kong listed housing Enterprises issued a new record of debt.　　BofA Merrill Lynch, Goldman Sachs and BOC International are the managing person and joint account manager.　　A person close to Evergrande said to our correspondent that this year's January Evergrande's issuance of debt, the new cash balance of January, plus the amount of pre-sale, and so on, the total cash on hand reached 30 billion yuan.　　However, in the opinion of analysts, Evergrande is still short of money and needs a lot of money for land payables and construction costs. In 2009, Heng Daquan year net profit of 1.05 billion yuan, but excluding investment property fair value income and financial guarantee callback factor, core profit is only 210 million yuan, compared with 08 440 million yuan of core earnings, down 52.27%. Last year, Evergrande's contract sales amounted to $30.3 billion, which grew by 402.3% per cent a year, but the 27.64 billion-dollar portion will be completed this year and the projectIncome is to be accounted for this year.　　According to the results of the report, at the end of last year, the total cash holdings of Evergrande Real estate (including cash and cash equivalents and restricted cash) amounted to $14.38 billion, total bank loans were $14.18 billion, unused bank financing amount was $20.45 billion, and the amount of contract sales recoverable was $5.7 billion. Jingzhang said, Evergrande plans to complete the area of 8 million square meters this year, even if the construction cost of 2000 yuan per square metre, also need 16 billion yuan. Evergrande's cash on hand and sales are only just right to pay for the construction costs.　　In addition, there is also news that Evergrande's projected construction cost of 29 billion yuan this year.　　Evergrande's chief financial officer, TSE, had disclosed that, as at the end of 2009, the amount of unpaid land was about $7.9 billion, paying 4.1 billion yuan this year, and 1.4 billion and 2.3 billion dollars for next year and 2012 respectively. Bank of international analyst Wang to this reporter said, in order to maintain a stable cash flow, as well as to pay nearly 8 billion yuan of land payments, Evergrande can only choose to send debt.　　Last year, Evergrande's IPO in Hong Kong was not very large enough to support its rapid development. For Evergrande's latest release plan, Zeng, assistant vice president and analyst at the rating agency, said on April 14 that the issuance of additional bonds would provide extra capital for the rapid development of Evergrande's real estate, with Moody's predicting a 4 times-fold interest rate and a 55% per cent ratio of adjusted debt to capital.　　Its financial position coincides with the level of B1 ratings. "Evergrande's sales remained strong in the first quarter of this year and the contract sales amounted to 8.4 billion yuan, which is in line with our expectations."　　"Zeng said. By the end of last year, Evergrande's annual maturity loan was about 6.36 billion yuan, which accounted for 44.8% of the total loan, 1-2 years ' maturity of the loan was 2.49 billion yuan, the total loan was 17.6%, and 2-5 year's maturity loans were 5.33 billion yuan, which accounted for 37.6% of total loans.　　Jingzhang said, Evergrande issued five-year notes, can also adjust its total borrowings in the short and long debt structure, increase the proportion of long-term debt.　　The housing stock in Hong Kong issued a debt tide coming? Recently, a number of developers to bond issuance, it is likely to be related to the requirements of accounting Standards: the issuance of debt must be in the end of the fiscal year 4-5 months after the issuance of debt, otherwise it will need to prepare a separate performance report.　　As a result, many mainland developers with capital requirements will strive to prepare for issuance by the middle of May after the announcement of their results. On April 7, Garden announced an invitation to accept the convertible bonds, which expired in 2013, with a total of 4.314 billion yuan of outstanding principal amounts, and to issue seven-year priority bills. Regarding this refinancing plan, the country garden concerned Personage said, the money which proceeds from issuing the paper will mainly be used in advance repurchase convertible bonds.　　Recently, a market personage disclosed, BI Garden proposal to issue the priority bill, the annual interest rate finally set to 11.75%. Moody's also pointed out that the proceeds of the bi-GUI garden bond will be used to buy the convertible bonds that expired in February 2011. So the proposed bond will improve BEAThe short-term liquidity of GUI yuan. By the end of last year, garden had been holding cash and bank deposits of about $8.424 billion, with the debt ratio increasing from 40.9% in 08 to 53.3%.　　Its total loan of 17.5 billion yuan, domestic project development loans accounted for 10.3 billion yuan, foreign loans in the convertible Bonds 4.3 billion yuan, high interest debt 2.6 billion yuan, other commercial loans 350 million yuan. The country garden holds more than 8 billion of cash, although finance director Wu Jingchen said there is plenty of money, but Garden's spending this year is not small: The land reserve is about 7 billion yuan, which covers unpaid $2.2 billion and 5 billion new land purchases. Another aspect of capital expenditure is land construction investment, and the Hengsheng property, which is estimated to be about $400 million and announced on April 14, will launch a roadshow briefing for institutional investors in Asia, Europe and the United States from April 15 onwards.　　The pricing of the proposed instrument, including the total principal amount, the offer price and the interest rate, will be determined by the joint lead agent and the joint Account manager Deutsche Bank, JPMorgan Chase and Standard Chartered.　　In a notice, the company said it planned to use the proceeds of the bill to fund new and existing projects, including construction costs and land costs, as well as for general corporate use. According to the performance report of Hengsheng Real Estate, 2009 Hengsheng realized the contract sales 6.71 billion yuan, an increase of 77.6%, net profit of 2.366 billion yuan, an increase of 88.5% per cent. Last year, Heng Sheng spent $9.5 billion to buy land reserves, and the annual purchase cost of about 10 billion yuan.　　At present, Hengsheng's Land reserve is more than 13 million square meters, enough for the next 6-7 years of development. By the end of last year, Hengsheng's cash balance was 6.052 billion yuan, and between 2009 and early 2010, Hengsheng signed a strategic cooperation agreement with the Construction Bank, and awarded a credit limit of 19.05 billion yuan.　　Hengsheng also plans to achieve sales of 15 billion yuan this year.　　Analysts at a foreign investment bank in Hong Kong told our correspondent that there would not be a big wave of debt financing for mainland developers in the short term, as some large developers actually did not have much capital pressure. "There are two types of companies that have financial pressure: one is to win in the development model, not the high profit margin, these companies are very strong in development, rolling development needs a lot of money to support." The second category is companies with higher borrowing ratios. And some companies mentioned above two characteristics, such as Evergrande, Bi GUI garden, decimating real estate and so on. "The analyst pointed out, also does not rule out some" opportunistic "company, may not have the capital pressure, also may in the appropriate issuance debt financing time, prepares for a rainy day.