Recently, the publicly offered and non-publicly offered housing rental corporate bonds simultaneously applied for by Greentown Real Estate Group Co., Ltd. have been preliminarily approved by the Shanghai Stock Exchange (SSE) and received no-objection letters. It is another import measure of the SSE to keep practicing national policy and boosting the development of housing rental market under the leadership of the China Securities Regulatory Commission (CSRC) after the 1st publicly offered housing rental corporate bond of Longfor Properties Co., Ltd. in China and the 1st rental housing REITs of Poly Real Estate Group Co., Ltd. in China.
The publicly offered and privately offered housing rental corporate bonds of Greentown Group are both issued in installments. In particular, it will issue RMB1.5 billion of publicly offered housing rental corporate bonds whose term will be no more than 10 years, and the issuer and the debt rating are both AAA; it will issue RMB2.5 billion of privately offered housing rental corporate bonds whose term will be no more than 10 years. The raised funds will be used for the issuers' 6 housing rental projects in Beijing, Hangzhou and other 1st-tier and 2nd-tier cities, involving the total rental housing property area of 144,000m2 of 1,226 rental houses to be built upon prediction. It's worth noticing that Greentown Group has designated the self-holding proportions and periods for the publicly offered and privately offered housing rental corporate bonds, thus further guaranteeing that the raised funds will be used for the housing rental projects. The launch of these bonds marks that the SSE has further made clear and detailed the standards of rental housing corporate bonds, thus accumulating experience for the standard development of the housing rental corporate bonds and playing a demonstrative role for housing rental enterprises to issue corporate bonds for financing.
To accelerate the cultivation and development of housing rental market, the SSE, under the leadership of the CSRC, has actively encouraged housing rental enterprises to issue corporate bonds and asset-backed securities products and provided high-quality housing rental enterprises with financial support. Statistics show that, up till now, the SSE has accepted 11 kinds of housing rental corporate bonds or asset-backed securities products with the expected issuance amount of RMB40.8 billion; it has approved 7 with the expected issuance amount of RMB18.3 billion; and it has completed the issuance of 3 with the total amount of RMB2.6 billion.
Next, the SSE will earnestly implement the requirements of the CPC Central Committee and the State Council. Besides, according to the deployment of the CSRC, it will intensify supports of corporate bonds and assets backed securities products for the housing rental market, improve the supporting systems' construction, keep assisting the housing system reform characterized by a combination of house rental and purchase and the long-term mechanism construction, and earnestly serve the real economy for its high-quality development.