HONG KONG SAR – 8 November 2021 – CIFI Holdings (Group) Co. Ltd. (“CIFI” or the “Group”, HKEx stock code: 884), a leading real estate developer and investor in China’s first-, second- and robust third-tier cities, is pleased to announce that the Group has repurchased its senior notes with the aggregate principal amount of US$75.3 million on the open market recently which highlighted the Group’s proactive approach to short-term debts management and optimization of the overall debt structure. This indicates the Group’s adequate cashflow and healthy financial position.
CIFI has always maintained good creditworthiness and gradually seen its offshore and onshore credit ratings steadily improve, which attracted strong support from all major international and domestic financial institutions. It has also been a reliable business partner of major banks and financial institutions in China’s real estate sector. As of 30 September 2021, CIFI has been granted RMB213.6 billion worth of on shore credit facilities in total, with RMB 56.6 billion of them utilized.
Specifically, the Group has been granted RMB15.0 billion worth of credit facilities from China Merchants Bank, RMB15.0 billion from China Minsheng Bank, RMB13.0 billion from China Construction Bank, RMB10.0 billion from Bank of Communications, RMB9.5 billion from Agricultural Bank of China, RMB8.0 billion from Industrial and Commercial Bank of China and RMB 8.0 billion from Bank of China. The credit line approved by other banks to CIFI covering 2022 remains steady as in 2021.
At the regular monetary policy meeting held in the third quarter of this year, the People’s Bank of China proposed “maintaining the healthy development of the real estate market and safeguarding the legitimate rights of homebuyers”. Two days later, the People’s Bank of China and China Banking and Insurance Regulatory Commission jointly organized a symposium on the work on financing the development of the real estate sector.
They pointed out that “financial institutions must follow the principles of rule of law and those of the market economy, and cooperate with the relevant departments and local governments in jointly maintaining the healthy development of the real estate market and safeguarding the legitimate rights of homebuyers”. In October, following the announcement of such policy and guidance by the People’s Bank of China and China Banking and Insurance Regulatory Commission, the four national Chinese banks and other key commercial banks resumed increasing quota for mortgage release and increased their support for construction loans in various regions of the country. This has helped CIFI to maintain the reasonable and adequate liquidity in the onshore market.
Although the real estate sector has faced the most difficult and challenging business environment in China, CIFI’s total contracted sales increased by 20% year on year to RMB209.25 billion in the first ten months of this year. As of 2 November 2021, the Group’s annual cash collection from property sales exceeded RMB200 billion with the cash collection rate over 95%. Such a high and efficient cash collection has laid a solid foundation for the Group’s development. Since the beginning of the year, CIFI has been continuously and actively managing its debts and proactively optimizing its overall debt structure with the short-term debt ratio maintaining at the lowest level among the industry peers.
In addition, the Group achieved breakthroughs by issuing both onshore and offshore bonds with the longest tenor of seven years and the lowest financing cost of 3.9% per annum. It also issued a green syndicated loan for the first time. All such moves met with strong support from financial institutions and investors. It is against the backdrop of the industry’s recent volatility that the Group has flexibly deployed its capital to proactively repurchase its short-term debts and has also strengthened its relationships with major offshore and onshore banks. Through such moves, the Group has enhanced its capability to withstand the risks of both the industry and the economic cycle. It is now working steadily to meet the requirements stipulated by the ‘Three Red Lines’ set by the authorities. All these efforts can ensure the Group’s healthy financial position and sustainable business development in the long term.
About CIFI (Group):
Headquartered in Shanghai, CIFI is one of China’s top real estate developers. CIFI principally focuses on developing high-quality properties in first-, second- and robust third-tier cities in China. CIFI develops various types of properties, including residential projects, offices and commercial complexes.
