Country Garden Repays Yuan Bond in Full
Country Garden, one of China’s largest real estate developers, has reportedly fully repaid a yuan-denominated bond that was due in 2023. The bond was issued in 2018 and was worth 3 billion yuan ($450 million).
Background of the Bond
The bond was issued by Country Garden’s subsidiary, Country Garden Real Estate Co. Ltd. It was a three-year bond with a coupon rate of 4.5%. The bond was issued in 2018 and was due to mature in 2023.
Country Garden’s Financial Situation
Country Garden has been in a strong financial position for some time. The company reported a net profit of 17.3 billion yuan ($2.6 billion) in 2020, up from 16.3 billion yuan ($2.4 billion) in 2019. The company’s total assets stood at 522.7 billion yuan ($78.3 billion) at the end of 2020, up from 488.2 billion yuan ($73.2 billion) at the end of 2019.
Country Garden’s Repayment Strategy
Country Garden has been actively repaying its debt in recent years. In 2020, the company repaid a total of 28.3 billion yuan ($4.3 billion) in debt, including the repayment of the 3 billion yuan ($450 million) bond.
The company has also been actively raising funds to repay its debt. In 2020, Country Garden raised a total of 17.5 billion yuan ($2.6 billion) in funds, including a 10 billion yuan ($1.5 billion) bond offering.
Country Garden’s Credit Rating
Country Garden’s credit rating has remained stable in recent years. The company’s long-term issuer rating is currently BBB+, with a stable outlook. The company’s short-term issuer rating is A-2.
Country Garden’s Outlook
Country Garden is expected to continue to be in a strong financial position in the coming years. The company is expected to continue to actively repay its debt and raise funds to finance its operations.
The company is also expected to continue to benefit from the strong demand for real estate in China. The Chinese government has been actively encouraging the development of the real estate sector, which has been a major driver of economic growth in recent years.
Conclusion
Country Garden has fully repaid a yuan-denominated bond that was due in 2023. The company has been in a strong financial position for some time and has been actively repaying its debt and raising funds to finance its operations. The company’s credit rating has remained stable and it is expected to continue to benefit from the strong demand for real estate in China.