Radiance Holdings defaulted on a $300 million bond
Top 50 Chinese developer Radiance Holdings defaulted on a $300 million bond on Wednesday, with that story leading Mingtiandi’s headline roundup today. Another troubled mainland builder, Sino-Ocean also makes the list as it predicts 2023 losses of up to $3.2 billion and Thai shopping mall owner Siam Piwat moves closer to launching the country’s biggest IPO in years.
China Builder Radiance Defaults on Dollar Bond Amid Sales Slump
Chinese developer Radiance Holdings missed a payment due on Wednesday on a $300 million bond, putting it into default and dealing a shock to investors who bet on a timely repayment over the past few days.
The Beijing-based builder pointed to extreme pressure in China’s property sector and a lack of improvement in sales, in a statement filed with the Hong Kong stock exchange, saying it will “exert its utmost effort” to ensure property delivery. Read more>>
Developer Sino-Ocean Warns 2023 Loss Could Reach $3.2B
Debt-stricken Chinese developer Sino-Ocean Group said it is likely to report another year of hefty losses in 2023 as home sales in mainland China plunged, signalling no immediate turnaround in the nation’s three-year industry slump.
The firm expects to incur a loss of RMB 20 billion ($2.8 billion) to RMB 23 billion for the year ended December 31, according to a Hong Kong stock exchange filing on Tuesday. Losses in 2022 are expected to be restated to RMB 19 billion from its previously reported RMB 15.9 billion. Read more>>
Mall Owner Siam Piwat Said to Consider Biggest Thai IPO Since 2022
Thai shopping mall owner Siam Piwat is moving closer to what would be the country’s biggest initial public offering in about two years, according to people with knowledge of the matter.
The Bangkok-based company is asking international banks to submit proposals for a potential first-time share sale that may take place before the end of this year, the people said, asking not to be identified discussing a private process. Siam Piwat is aiming to raise between $500 million and $750 million in the IPO, the people said, adding that deliberations are ongoing and it could decide not to list. Read more>>
Vanke Gets $194.5M Loan Before Debt Payment Peak
China Vanke, one of the nation’s largest developers, has secured a RMB 1.4 billion ($194.5 million) bank loan ahead of RMB 30 billion in debt falling due this year and amid rumours of an even bigger financial lifeline in the offing.
Two units of Vanke secured the 14-year loan from Industrial Bank to repay existing loans and bonds, the Shenzhen-based company said in a stock exchange filing on Tuesday. Vanke will provide guarantees for the loans, it added. Read more>>
Aoyuan Finalises Restructuring of Offshore Debt
China Aoyuan Group completed its offshore debt restructuring on Wednesday, meaning that the struggling Chinese developer has managed to reorganise both its onshore and offshore liabilities, ensuring that it avoids default.
Aoyuan will issue new financial tools to swap $6.1 billion in offshore debt to reduce its liabilities by $4.9 billion over the next eight years, according to the debt restructuring scheme that was approved by a Hong Kong court in January. Read more>>
Hindenburg Shorts Data Centre Owner Equinix
Short seller Hindenburg Research targeted data centre owner Equinix on Wednesday, alleging that the company manipulates its accounting and is selling an “AI pipe dream”.
Hindenburg’s disclosure of a short position and its allegations raise questions about the future for Equinix, which has been benefiting from the expectation that artificial intelligence companies will need even more data centres to power the technology. Equinix shares were pummelled Wednesday, and the company pulled a previously planned bond offering after the report hit. Read more>>
JPMorgan Chase Weighs New China Chiefs in Reshuffle
JPMorgan Chase is considering appointing its Asia Pacific chief financial officer and a key Hong Kong dealmaker to run its China business, people familiar with the matter said.
The bank is mulling Alan Ho as its new CEO for China while Rita Chan, who joined the US firm in late 2020 from Goldman Sachs, is set to become senior country officer, the people said, asking not to be identified before an internal announcement. The two would fill the vacancy to be left by Mark Leung, who resigned as China CEO last month after a 25-year stint at the firm. Final decisions on the candidates and remits haven’t been made. Read more>>
Korean Regulator Urges Banks to Boost Support for Property Projects
South Korea’s financial watchdog urged lenders to expand financial support for troubled builders as concerns grow over risks from distressed real estate projects.
The number of project finance sites seeing “significantly worsening profitability” is rising due to high interest rates and construction costs, Lee Bokhyun, governor of the Financial Supervisory Service, said in a Thursday meeting with financial and construction firms. Lenders should consider expanding the size of the PF stabilisation fund while also actively restructuring troubled loans they have backed, he said. Read more>>
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