Five listed real estate developers in China — a group including Country Garden Holdings Co. Ltd., Guangzhou R&F Properties Co. Ltd. and a mainland Chinese unit of Zhenro Properties Group Ltd. — suspended their respective plans to issue a combined 38.1 billion yuan of bonds between May 25 and June 1, Caixin (Beijing) reported.
The subsequent suspensions followed the less-than-ideal result of Beijing Orient Landscape & Environment Co. Ltd.'s 1 billion-yuan bond offering, which delivered only 5% of its targeted proceeds. According to the June 4 report, the developers could have suspended their planned offerings for fear of having to face a similar outcome, which could draw unwanted attention to their financial standing and credibility.
Country Garden, for its part, is postponing its planned offering to alter its fundraising and investment plan, the paper noted, citing a company representative. The issuance will reportedly resume once relevant details have been confirmed.
The developers' decision also comes at a time when a deleveraging campaign is at play in China, with investors being wary of developers' financing ability and default risks amid tightening credit conditions in the country, Caixin reported.
As of June 4, US$1 was equivalent to 6.41 yuan.
