(Yicai Global) Oct. 21 -- Private property developers in China are seeking to join the second round of state-guaranteed bonds.

Participants in the first round, and an increasing number of other non-state-owned firms, are actively communicating with China Bond Insurance to enter the state-owned credit enhancement body's second list of bond issuers to secure funds at a reasonable cost, Yicai Global learned in recent interviews.

A successful issuance of bonds would replenish property developers' liquidity and also boost market confidence amid slow real estate sales recovery and a looming peak of debt repayment. Between August and September, CBI granted full, unconditional, and irrevocable guarantees to certain leading companies in the sector to help them access credit amid the market downturn.

Longfor Group Holdings, Seazen Holdings, Country Garden Holdings, and CIFI Holdings Group were some of the successful firms in the first round that are now seeking to join again, Liu Shui, research director at the China Index Academy, told Yicai Global. Smaller developers are also in contact with CBI to join the program.

Next, Seazen is planning to issue CNY1.5 billion (USD207 million) worth of such guaranteed bonds, Yicai Global learned. CIFI is eyeing a sum of no more than CNY1 billion. Longfor is in talks about the second issuance, an executive said to Yicai Global, adding that there is no official announcement yet. Other developers that are allegedly involved did not reply to Yicai Global.

Some CNY120.2 billion (USD16.6 billion) worth of property developers' mainland debts will be due in the fourth quarter, while the sum of offshore bonds is CNY86.2 billion (USD11.9 billion), according to a research note published by BOC International China. This means that about CNY68.8 billion of notes will mature on average each month.

Founded in 2009, CBI was the first domestic bond credit enhancement institution. It aims to help borrowers, especially small and medium-sized enterprises, to solve their fundraising difficulties.

CBI is a joint venture of state entities, including China National Petroleum, Shougang Group, and Sinochem Holdings. Each shareholder has a 16.5 percent stake. The National Association of Financial Market Institutional Investors holds the remaining 1 percent of equity, according to corporate registration information.

Editors: Tang Shihua, Emmi Laine, Xiao Yi