On December 9, New Hope Real Estate successfully issued 2022 (first phase) corporate bonds with a scale of 1.18 billion yuan. The issuance period is 2-4 years, the lead underwriter is Shenang Securities, and the subject rating/debt rating is AA+/AAA by China Chengxin International.
Image source: WeChat official account of New Hope Real Estate
As a model real estate company issuing bonds under credit protection contracts, New Hope Real Estate has attracted many institutions to actively subscribe for this bond, and the coupon rate of 4.5%-5.5% is lower than the average financing cost of private real estate companies. While optimizing the debt structure, it significantly reduces the financing cost of enterprises. Under the guidance of the Shanghai Stock Exchange, China Securities Finance Co., Ltd., Sinolink Securities, local credit promotion companies, guarantee companies Tianfu Zengjin, and Wuhou Zhongxiaodan jointly created a credit protection contract for this bond to protect the principal with a total scale of 580 million Yuan, providing corresponding credit enhancement support.
The public offering bond issuance adopts the “bond issuance + credit protection” plan for financing. This model aims to boost investor confidence, increase the credit level of bond financing, improve the efficiency of bond issuance, and jointly maintain the bond issuance window of private enterprises. It is worth mentioning that, with the support and encouragement of the regulatory authorities to the financing of private enterprises, the normal financing channels of enterprises will be further restored, the financing costs of enterprises will be reduced, and market confidence will be restored.
Thanks to the full support of investment institutions, New Hope Real Estate can continuously improve its core debt repayment ability, help its own development, repay investors’ trust with sustained and stable operating results, and reserve a strong impetus for going through the cycle.
Under the keynote of the policy of “housing to live in, no speculation”, changes in credit policy and financing environment will drive industry risks to be cleared faster and help high-quality real estate companies solve short-term liquidity risks.
As a top student in the industry, New Hope Real Estate, since the beginning of this year, the company has successively received comprehensive credit support from Bank of Communications, Shanghai Pudong Development Bank, Industrial Bank, and Industrial and Commercial Bank of China, totaling more than 20 billion yuan, and completed the merger and acquisition of 3 cooperative projects, demonstrating high-quality private enterprises social responsibility. In the future, the company will continue to uphold the self-discipline and prudent business philosophy, build a solid bottom line of risk with safe and sound financial performance, and achieve sustainable development of the company.
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