Some of China’s top property developers plan to issue short-term asset-backed bonds, yet another sign that regulators are marginally expanding financial channels into the sector amid Evergrande’s debt crisis.
Evergrande, struggling with debts of more than $300 billion, said on Friday that “there was no guarantee” it would have sufficient funds to pay the obligations, prompting the country’s main financial regulators to calm the Marketplace.
Regulators said any declines were manageable and developers’ normal financing needs would be met, but the sector faces another year of tight financing conditions and refinancing risks, Moody’s said in a note last week.
Country Garden, the country’s leading real estate developer, said on Sunday that the company is considering issuing supply chain asset-backed (ABS) bonds in the near term.
“As an innovative financing tool, ABS products in the supply chain can support the financing of ‘upstream’ suppliers (which provide inputs for production) and alleviate financing difficulties for small and medium-sized companies,” the company said in a statement in its official WeChat account.
(Por Min Zhang, Samuel Shen e Norihiko Shirouzu)
Reference: CNN Brasil
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