Chinese developer Longfor has sufficient funds to repay loans due this month, it told bondholders

Chinese developer Longfor (0960) told bondholders that it has prepared sufficient funds to repay a 1.3 billion yuan (HK$1.52 billion) bank loan due later this month, and expects to be able to repay a US bond maturing next year, Bloomberg reported. 

Sources stated at a meeting on Tuesday that it plans to secure funds by March next year to repay a US$250 million US bond maturing in April, with funds from operating cash flow and new domestic loans.

Longfor also informed bondholders that it obtained approximately 3.2 billion yuan in new operating property loans in the first half of this year, with an interest rate of approximately 3 percent, and a loan-to-value ratio exceeding 70 percent, according to Bloomberg.

The company currently operates 96 shopping malls, 79 of which are owned; and plans to open six more in the second half of the year, five of which are owned.

Longfor plans to use these five owned shopping malls to finance 5 billion yuan in operating property loans. 

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓