Xinyuan Announces $50 Million Bond Repurchase Plan

The bond repurchase plan will be valid through December 2021.

Author: Anthony Russo   

Xinyuan Real Estate Co. Ltd. (NYSE: XIN) announced on Wednesday that it has approved a bond repurchase program of up to $50 million.

The Beijing-based real estate developer said in a statement today that the plan, which went into effect on Jan. 20, will be valid through December 2021. The repurchases under the plan will be made through a combination of open market and privately negotiated transactions.

"This new repurchase program demonstrates the Board's confidence in our business model, our strong financial position and the sustainability of our free cash flow,"  Yong Zhang, the chairman of Xinyuan, said in a statement today.

He added, "We will opportunistically continue our repurchase program while maintaining ample liquidity. This gives us the flexibility to optimize debt structure while continuing to support growth."

In early trading on Wednesday, shares in Xinyuan rose 2 cents to $3.69 apiece.

Founded in 1997, Xinyuan has real estate projects in more than 10 cities in China, including Beijing and Shanghai. According to its statement, Xinyuan claims it was one of the first Chinese real estate developers to enter the U.S. market and has been active in New York City.

The company posted $1.6 billion in revenues for the nine months ended September 30, 2019, up from $1.1 billion in the same period of the prior year, an increase of 40%. Over the same period, net income was $43.5 million, up from $1.8 million.