(Yicai Global) July 13 -- China Fortune Land Development, one of the country’s biggest property developers, plans to issue its third perpetual bond in a month, bringing its recent haul to CNY14 billion (USD2 billion).

China Fortune will issue CNY6 billion in perpetual bonds to Ping An Asset Management and use the proceeds to develop and construct its projects, the Beijing-based firm said on July 11.

It also sold CNY5 billion worth to Ping An Annuity Insurance on June 29 and CNY1.5 billion and CNY3 billion each to Shaanxi International Trust and Zhongrong International Trust on June 18.

The annual rate for the latest bond is 8 percent in the first two years, rising to 12 percent thereafter. Perpetual bonds have no maturity date. Ping An Asset is acting in concert with Ping An Life Insurance, China Fortune’s second-largest shareholder. Together the two own 25.18 percent of the firm, per the announcement.

China Fortune’s indirect wholly owned unit CFLD Cayman Investment will issue up to USD2.05 billion worth of dollar bonds outside China with an up-to-10-year or unfixed insurance period, China Fortune said on July 11.

Despite raising CNY14 billion of late, the company still has a tight budget. It posted CNY46.4 billion in book monetary funds as of the end of the first quarter, and CNY74.7 billion in non-current liabilities due within one year, as well as short-term borrowings, so its near-term debts far outweigh its cash reserves, public data show.

China Fortune reported CNY30 billion in sales in the first five months, down 42 percent on the year. It bought 2.8 million square meters of land for CNY12.8 billion, up 11 percent and 124 percent, respectively. The firm has bought ever more land recently even as its sales have dived, thus placing great strain on its cash flow.

Editor: Ben Armour