2 Min Read
HONG KONG, July 17 (Reuters) - Beijing Capital Land Ltd plans to list a bond worth up to 2 billion yuan ($296 million) on the Beijing Financial Assets Exchange (CFAE), a refinancing route that is less subject to measures aimed at slowing the rate at which cash is flowing into China's property sector.
The state-owned firm late on Friday said the plan would allow it to quickly raise funds to finance project development and construction, and would help reduce financing costs.
"Regulatory approval to issue corporate bonds on the main exchange is strict," a company official told Reuters on Monday. "But for this issuance - aimed at financing commercial projects - we only need approval from CFAE."
Beijing Capital Land will sell the bond through private placement, the company said.
Corporate bonds sold via the main market are regulated by the China Securities Regulatory Commission. The regulator has been tightening issuance restrictions for real estate developers since the second half of last year as part of broader measures aimed at slowing down property price increases.
In May, Shimao Property Holdings Ltd and Longfor Properties Co Ltd said they had won approval from a different regulator to issue medium-term bonds in the interbank market, another alternative refinancing channel increasingly used by developers. ($1 = 6.7671 Chinese yuan renminbi) (Reporting by Clare Jim; Editing by Christopher Cushing)