Country Garden repays US$111 million bond in full, avoiding first onshore default in the process
- The note, with a put option due on Wednesday, has been paid in full, Country Garden says in a filing to the Shenzhen Stock Exchange
- Top executives, including chairman Yang Huiyan, will take a pay cut and they will also lose perks such as free company cars, a spokesperson says
Embattled property developer Country Garden Holdings has averted what would have been its first onshore default by repaying a 800 million yuan (US$111 million) bond.
The note, with a put option due on Wednesday, has been paid in full, the company said in a filing to the Shenzhen Stock Exchange, adding that the debt would be delisted on Thursday.
At a meeting last week at the Shenzhen exchange, most investors agreed not to exercise the put option on the bond, which would have allowed investors to demand repayment before its maturity next year.
Earlier on Wednesday, some of the developer’s top executives said they were taking a pay cut – the third since early 2022 – as the company focuses on delivering pre-sold properties and preventing further defaults on its debts amid stagnant home sales.
Executive directors Yang Huiyan, Mo Bin, and Yang Ziying have “voluntarily requested” to reduce their annual pay to 120,000 yuan from 370,000 yuan, 3 million yuan, and 2 million yuan, respectively, according to a statement issued late on Tuesday.