General Office of the National Development and Reform Commission, Circular on the Requirements for the Application for Record Filing by Real Property Enterprises That Issue Foreign Debt

Issued: July 9, 2019

Main contents: The proceeds derived from an offering of foreign debt by a real property enterprise may only be used to replace a medium or long-term foreign debt that will fall due within the coming year (Article 1).

In its foreign debt record filing application materials, a real property enterprise shall provide detailed information on the foreign debt it proposes to replace, including the size of the debt, term information, information on its record filing with the National Development and Reform Commission, etc. and submit an Undertaking on the Genuineness of the Foreign Debt Offering of an Enterprise (Article 2).

A real property enterprise that offers foreign debt shall strengthen its information disclosure and specify the use to which the proceeds are to be placed and other such information in its prospectus and other such documents (Article 3).

A real estate enterprise shall formulate an overall foreign debt offering plan, comprehensively consider factors such as exchange rates, interest rates, currency and its asset and liability structure, duly select the financing instrument, flexibly use currency swaps, interest rate swaps, forward exchange transactions, options, swaps and other such financial products, reasonably hold foreign exchange positions, maintain reasonable ratios between the domestic parent’s foreign debt and the offshore establishments’ foreign debts, renminbi denominated foreign debt and foreign currency denominated foreign debt, short-term foreign debt and medium and long-term foreign debt, and domestic debt and foreign debt, and effectively guard against and control foreign debt risks (Article 4).