Shanghai Greenland Group chairman and president Zhang Yuliang
In today’s roundup of regional news headlines, Shanghai-backed Greenland Holdings rattles markets with its proposal to delay a bond redemption by one year, while defaulting developer China Evergrande unveils its own scheme to compensate offshore debt holders.
Shanghai Greenland Group Rocks Bond Market With Extension Plan
A Chinese property company long considered among the nation’s most resilient shocked investors with a proposed dollar-bond payment delay, raising fresh doubts about the financial strength of the industry’s higher-rated borrowers.
Greenland Holdings Corp, whose shareholders include the Shanghai government, is asking holders of a $488 million dollar note due June 25 to delay repayment by a year, a rare sign of stress at a state-linked firm. Its bond prices tumbled from highs of 92 cents on the dollar to record lows of 31 cents in recent days as fears of an extension were confirmed. Read more>>
Evergrande Offers Alternative Scheme to Pay $19B Bond
China Evergrande is considering repaying offshore public bondholders owed $19 billion with cash instalments and equity in two of its Hong Kong-listed units, two sources said, as the world’s most indebted developer looks to emerge from its financial woes.
Evergrande, whose entire $22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default after missing payment obligations late last year, said in March that it would unveil a preliminary debt restructuring proposal by the end of July. Read more>>
More Chinese Developers Ask for Extra Time to Pay Back Bonds
More Chinese property developers, including Jinke Property Group, Datang Group and Rongqiao Group, have been trying to get extra time to make upcoming debt payments, as they continue to struggle with getting their hands on enough cash to repay creditors.
The repayment wrangling indicates that many Chinese developers remain snagged in a liquidity crisis despite government measures over the past few months to ease severe market and financing restrictions. So far, the measures, which aim to keep the industry from falling into financial turmoil, have failed to shore up sales or market confidence. Read more>>
Jiayuan International Falls as Debt Worries Feed $1.9B Stock Sell-Off
Jiayuan International, among the early Chinese developers of shoebox flats in Hong Kong, sank after the stock resumed trading in the city as concerns about debt repayment burden prolonged a billion-dollar sell-off this year.
The stock slumped 40.5 percent to 34.5 Hong Kong cents (4.40 cents) as of 2.50pm local time, taking the decline this year to 87 percent. The stock has lost $1.86 billion in market value over the past 12 months since the stock reached its peak on 27 May last year. Read more>>
GuocoLand Unveils Leasing Strategy for Bugis Mixed-Use Project
Singapore-listed developer GuocoLand has shared its leasing approach for the office and retail components of Guoco Midtown, its upcoming integrated development in the Bugis area of Singapore. The developer has also shared details of its office offering within the 30-storey Grade A office tower in Guoco Midtown.
Construction is already underway at Guoco Midtown, and the two residential developments in the project — the 558-unit Midtown Modern and 219-unit Midtown Bay — have already been launched for sale. On 24 May, the developer showcased the office show gallery located on the eighth floor of the actual office tower. Read more>>
Swire Properties Files $4B Medium-Term Note Programme
Swire Properties MTN Financing filed an application with the Hong Kong stock exchange to register a $4 billion medium-term note programme.
The debt facility with a one-year validity after 26 May was jointly arranged by HSBC and Standard Chartered Bank. Read more>>
Hong Kong Home Prices Rose in April After 3-Month Drop
Hong Kong private home prices reversed a three-month decline in April, the latest official data showed on Friday, as the financial hub stabilised after COVID-related woes and homebuyer sentiment was boosted by waves of new development launches.
Prices in what survey company Demographia ranked the world’s most unaffordable housing market climbed 0.5 percent in April from the previous month, according to official data, compared with a revised 0.6 percent fall in March. Read more>>
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