(Yicai) Feb. 20 -- With China’s real estate market showing signs of picking up, some property developers recently announced plans to issue bonds to fund their daily operations and repay old debt, with at least one eyeing a rare offshore bond sale.

A CNY9 billion (USD1.2 billion) proposed bond sale by Beijing Capital Development Holding was accepted by the Shanghai Stock Exchange on Feb. 18, the same day that the China Securities Regulatory Commission approved Xiamen Xiangyu to sell CNY5 billion of notes. Xiamen C&D and Minmetals Land also unveiled similar plans this month.

Greentown China Holdings intends to issue USD350 million of three-year senior US dollar-denominated notes, bearing an annual interest rate of 8.45 percent, it said in a filing to the Hong Kong Stock Exchange on Feb. 13. Five days later, the builder said it would issue an additional USD150 million on the same terms and with the same coupon.

The net proceeds, after deducting subscription discounts, commissions, and other expenses, will be used to refinance Greentown's existing debt, the Hangzhou-based firm noted.

“These developments reflect a easing of investor pessimism towards the real estate sector, with market confidence undergoing a process of recovery,” Liu Shui, director of corporate research at the China Index Academy, told Yicai.

"Companies need more financing channels to secure enough working capital at reasonable cost and term structures to support their normal development,” Liu said. “With various supportive policies being put into effect and the stabilization and recovery of market operations, the financing environment for real estate companies is expected to go on improving.”

Still, the debt pressures facing China’s developers cannot be ignored. CNY482.8 billion (USD66.4 billion) came due last year, but only CNY215.8 billion was raised through new bonds, according to data from China Real Estate Information Corporation, meaning they did not raise enough funds to repay debt. At CNY525.7 billion, the amount maturing this year is even greater.

Editors: Tang Shihua, Futura Costaglione