Evergrande successfully issued the bonds of 750 million USD

Several top international investment institutions sought after the bonds and the intended subscription amount exceeded 2.5 billion USD

News of this newspaper: On Jan. 22, another large-scale activity of Evergrande in the international capital market after its listing was finally announced to the public. The group declared in its public announcement that it had successfully issued five-year senior notes of 750 million USD on Jan. 21, New York time.

This amount had set a new record of the year for the bond issuance scale of mainland property stocks listed in Hong Kong. Before then, insiders said Evergrande Real Estate Group (3333) had planned to issue notes in USD, and the global response was ideal with the intended subscription amount exceeding 2.

5 billion USD.

The news from the market showed that the successful listing of Evergrande before then had offered high profits to global investors. In addition, the sales amount of 30.3 billion yuan of Evergrande in last year, which made the investors fully confident, had contributed to the excellent performance and smooth progress in the bond issuance of Evergrande and the active subscription of several global institutional investors.

Facing the warm welcome of the market, the company finally determined the bond issuance amount of 750 million USD which set a record, far exceeding the 500 million USD predicted by the market.

In last year, the sales situation of Evergrande was good. According to news of the market, the book cash balance of Evergrande had largely increased. In addition, because of the successful absorption of investment in this bond issuance, it is estimated by insiders that Evergrande will have large amount of cash in a short period, and Evergrande is hopeful to be one of the richest real estate enterprises holding most cash in China at present.

It is said by insiders that the successful bond issuance showed that the global capital market had great confidence for the development of large-scale leading Chinese real estate enterprises of advanced tactics, good management, large scale, and powerful anti-risk capability, and the successful bond issuance should be able to establish the successful model for other semi-new mainland property stocks for which preparation for similar capital raising was being made.

According to the analysis of analysts, there have constantly been many economic policies launched in China, and there has been the tendency of tight monetary policy. The financing capacity of real estate enterprises will decide their future development. The reasons for the hot subscription of bonds of Evergrande in the global bond market is the tactics of development in second-tier provincial capitals, the powerful anti-risk capability, and the good sales performance, which has been generally recognized by global institutional investors, of Evergrande as the leader of standard operation and high-quality real estate in China.

The hot subscription shows that global investors still think highly of the prospect of Chinese real estate market.

It is pointed out in the recent report of Credit Suisse Group that the successful bond issuance of Evergrande will be helpful for eliminating financial risks, and Credit Suisse Group gives Evergrande the rating of Outperform. An analyst added that the bond issuance of listed companies could improve the cash flow, and increase the proportion of borrowed debts of longer terms.

The good sales amount, the extremely powerful financing capability in the international capital market, and the large amount of cash in hand enable Evergrande to have the initiative in the broad environment of narrowed financing channels, speed up the development of the company, and offer it the advantage in the future competition by the few largest leading real estate enterprises for the Big Brother positio