CFLD Makes Early Bond Payment, Reaches Settlement With Zhongrong on Loans

China Fortune Land Development (CFLD) has reached a settlement with Zhongrong International Trust on repayment of two trust loans, according to the Shanghai Clearing House. With this, defaults were not triggered on CFLD’s 5.5% CNY 1bn ($154mn) local bond and 5.17% CNY 500mn ($77mn) note. This is positive news for CFLD after Zhongrang reportedly declined to extend CFLD’s trust loans, according to REDD, earlier this month. CFLD also transferred funds to a domestic clearing house to make an early repayment requested by investors of its 8.2% CNY 440mn ($68mn) 2022 local bond, according to sources. Earlier in the week, CFLD wired funds to meet early redemptions on a CNY 1.5bn ($231mn) local bond. CFLD’s dollar bonds, which recovered after their bonds fell over 40% in the first week, have fallen back again with most bonds trading in the 50s. The 9% 2021s were 10.5% lower to 63 and its 6.92% 2022s were down 9.4% to 53.2 on Friday.