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China’s Real Estate Developer Issues $400M Senior Notes Due 2021

Published 12/18/2018, 01:41 AM
Updated 12/18/2018, 01:41 AM
© Reuters.

Investing.com - Real estate development firm CIFI Holdings Group Co Ltd (HK:0884) issued senior notes worth US$400 million on Tuesday.

The senior notes will bear interest of 7.625% and are set to mature in March 2021. The Shanghai-based company expects the proceeds from the notes to be around $392.7 million and plans to spend the funds on refinancing existing debt and adjusting its plans to deal with changing market conditions.

CIFI issued senior notes a few times this year to raise funds, including 5.5% notes in January due 2023 for $300 million, 6.875% notes in April due 2021 for $500 million, 6.375% notes in May due 2020 for $300 million and 7.75% notes in September due 2020 for $150 million.

The real estate slowdown in China forced the company to cut up to 8% of its workforce last month.

The company’s shares dropped 2.22% to HK$3.97 following the issuance.

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