RMB blame! Dollar debt does not fall China Airlines sleepless nights
- Autor:Stander
- Fuente:Global Logistics Network
- Fecha de Publicación:2016-08-03
Chinese airlines to accelerate the reduction of dollar debt, because the devaluation led to increase the cost of service, and in 2009 at the fastest rate of issuance of RMB bonds, control of exposure to the dollar.
Bloomberg data show, this year 1-7 month, Chinese Airlines issued a total of 106 billion 300 million yuan ($16 billion) of bonds, is 5 times last year over the same period last year.
China led to international aviation accident of RMB devaluation, foreign exchange losses of China Southern Airlines and Eastern Airlines three airlines soared 18 times to 2 billion 500 million yuan, as the dollar debt in the total debt of these companies in China accounted for more than 80%. of the first Shanghai securities (first Shanghai Securities) analyst Richard Zhang said, reduce the risk of dollar debt the mouth is especially beneficial for highly dependent on imports, such as airlines usually borrow dollars to buy the aircraft.
UOB said the devaluation of the renminbi. A settlement of the same amount of dollars to raise more renminbi, if these airlines maintain debt unchanged, the additional cost is still lower than the accounting losses. UOB analyst K. AJITH said, China Airlines is rapidly reducing dollar debt leverage, the market expects the yuan this year and next year will continue to fall, this year will be issuing more Renminbi Asian bonds.
The worst currency AJITH, $5% appreciation will bring 3 billion 400 million yuan loss to China Eastern Airlines, Air China and China Southern Airlines are 2 billion 800 million yuan RMB. This is Asia's worst performing currency this year has depreciated by more than 2%, currently trading at around 6.64 levels. According to a Bloomberg survey of analysts expected value at the end of the year, the RMB will depreciate to about 6.82. In January this year, the central bank China had slashed the yuan central parity for 811 last year after the exchange rate reform The second accident down the central parity of RMB. In March, Air China said the plan by the end of this year will be reduced to the total debt of $60% of debt, by the end of 2015 dollar debt accounted for 73.5%. of the company had also announced plans to issue 12 billion yuan bond for 5 years.
According to Bloomberg, as of March 2016, China accounted for the company's total debt debt of $50%. with the dollar and the renminbi debt 50-50 target. Bocom International (bocom International Holdings) analyst Geoffrey Cheng said in the accounting earnings, foreign exchange loss is essentially a conversion loss, in order to reduce exposure to the US dollar in reducing dollar debt increase the issuance of RMB bonds is justified. A large number of aircraft orders Boeing said. In the next 20 years, Chinese also need 6330 new aircraft, the amount of orders worth 950 billion yuan, accounted for the global 17%. and capital The market (Daiwa capital markets) in Hongkong analyst Kelvin Lau said the airline industry expenditure mainly denominated in dollars, the airline will hold a certain amount of dollar debt.
But because of the devaluation of the renminbi, the debt as much as possible by dollars into RMB is still appropriate, otherwise it will face higher loss. According to the 2015 annual report at the end of last year's dollar debt equivalent to 76 billion 500 million yuan to 62 billion 600 million yuan, China Southern Airlines, China Eastern Airlines was 87 billion yuan. Geo securities CEO Francis Lun said, since the RMB devaluation last year, many companies to increase borrowing to repay $Chinese RMB loans, this trend is still continuing. China company hopes to even reduce losses caused by exchange rate fluctuations.