China’s property crisis: Debt-laden Guangzhou R&F Properties seeks extension on 10 offshore bonds worth US$5.16 billion

Name: New Evergrande protests amid reports troubled Chinese property giant ordered to raze development
Uploaded: 2022-06-17T14:08:56.000Z
Duration: 1 min 29 s
Description: New Evergrande protests amid reports troubled Chinese property giant ordered to raze development

The developer is seeking investors’ consent to extend the maturity dates of the bonds to avoid default

The company’s property sales tumbled 58.4 per cent year-on-year in the first five months of 2022

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If the Guangzhou-based developer fails to get the bondholders’ approval, it said it will resort to restructuring its debt according to proposed terms already circulated to them. Photo: SCMP Pictures

Eric NgandPearl Liu

Published: 10:08pm, 17 Jun 2022Updated: 10:57pm, 17 Jun 2022

Debt-laden Guangzhou R&F Properties is seeking investors’ consent to extend the maturity dates of 10 of its offshore bonds worth US$5.16 billion due between now and 2024, to avoid defaults.

If the Guangzhou-based developer fails to get the bondholders’ approval, it said it will resort to restructuring its debt according to proposed terms already circulated to them.

“Despite the group’s efforts to enhance its liquidity position, due to a weak liquidity profile with high uncertainties over debt refinancing and challenging operating and funding conditions, the group experienced negative developments in its credit ratings and the occurrence of certain defaults, and certain legal proceedings in connection with certain of its offshore indebtedness,” it said in a filing to Hong Kong stock exchange on Friday.

“In light of the above, the group is conducting consent solicitations to seek waivers of existing and potential consequential defaults or events of default under the notes and to extend its debt maturity profile.”

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New Evergrande protests amid reports troubled Chinese property giant ordered to raze development

The bondholders have until July 7 to cast their votes on the proposals. Bondholders will receive US$5 for every US$1,000 of bond principle held, as an incentive to consent.