(Yicai Global) July 15 -- China’s real estate developers have unveiled plans to sell new bonds in the run up to a debt repayment peak this half.

More than 10 firms such as Greentown China Holdings and CIFI Holdings Group have announced debt sales, the China Securities Journal reported today. Property companies issued 16 domestic corporate bonds last week worth CNY18 billion (USD2.6 billion), the report said, citing partial statistics.

The scale of maturing domestic and foreign bonds in the second half of this year stands at about CNY558.8 billion (USD80 billion), some 58 percent higher than a year earlier, according to a report by Beike Real Estate Research Institute.

The overall financing environment is relatively optimistic and low cost and affords a good chance to refinance, said Chen Xiao, an analyst at Zhuge Zhaofang Data Research Center. Debt repayment aside, developers usually race to raise funds in June and July, a sector insider noted. 

Greentown applied to the Hong Kong Stock Exchange and was approved to issue USD300 million in senior notes due in 2025 to service current debt, the Hangzhou-based company said on July 13. CIFI and its subsidiary guarantors reached a deal with initial buyers to issue USD300 million worth of senior notes due in 2025 with a 5.95 percent coupon to refinance existing debt, it said yesterday.

Kaisa Group Holdings plans to issue USD700 million bonds to refinance medium and long-term overseas debt due within one year, according to its statement of July 9.

Developers have 32 bonds falling due this month whose value totals CNY55.5 billion, up 91 percent on last month, according to data from the CRIC Research Center.

Editor: Ben Armour