China Vanke plans financing for investment in long-lease apartments

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China's top property developer Vanke said it plans to issue up to 35 billion yuan (about 5.39 billion US dollars) of direct debt financing instruments to boost liquidity or finance projects such as long-lease apartments.

In a statement filed to the Shenzhen Stock Exchange, the company said its board has agreed to submit to the general meeting of shareholders to approve the issuance of direct debt financing instruments.

The proceeds raised from the issuance are expected to be used to meet the company's production and operation needs, to adjust its debt structure, and to replenish liquidity resources or investment projects such as long-lease apartments, said the statement.

Signs show the direction of Vanke group headquarters and Shenzhen Vanke Real Estate at its headquarters in Shenzhen, south China's Guangdong province. /VCG Photo

The type of instruments to be issued will include corporate bonds, medium-term notes, short-term commercial papers, perpetual bonds and asset-backed bonds in the domestic and overseas markets, the company said.

China will move faster to put in place a housing system that ensures supply through multiple sources and encourages both housing purchases and rentals, according to the annual Central Economic Work Conference last month.

The country will develop its housing rental market, especially long-term leases, and support the development of professional and institutional housing rental enterprises.

China Vanke said earlier this week that its sales revenue reached 62.23 billion yuan in December, which brought the company's sales for 2017 to 529.88 billion yuan.

Source(s): Xinhua News Agency