As the turmoil in Chinese property developers’ dollar bonds unfolds, some developers bought back small quantities of their dollar bonds in a bid to lend confidence to investors.
- Central China Real Estate (CCRE) repurchased $13.9mn in principal of three of its dollar bonds in September, as per an exchange filing on October 6. CCRE bought $2.7mn of its 7.9% 2023s, $2.451mn of its 7.75% bonds due May 2024 and $8.77mn of its 7.25% bonds due August 2024. The bonds are currently trading at 53.39, 54.63 and 53.86 respectively.
- Yuzhou Group bought back $10mn in principal of its 6% bonds due 2022. The amount outstanding now stands at $340mn. The 2022s currently trade at 76.48 cents on the dollar.
- Redsun Properties repurchased $3mn in principal amount of its 13% bonds due October 30. The amount outstanding now stands at $97mn. The bonds currently trade at 99.92 cents on the dollar.
- Radiance Holdings bought back $18.2mn of its bonds due January 2022 on October 6. This comes after the developer bought back $53.5mn of its 11.75% bonds due this month on October 31 and $3.2mn of its 2022s earlier. The 2022s currently trade at 97.34 and the notes due October 31 this year trade at 99.89.
Last month, while S&P and Moody’s revised their outlooks on CCRE to negative, they did state that the company should have sufficient cash to meet its upcoming maturities of $400mn on November 8 this year and $500mn in August 2022. All the four developers CCRE, Yuzhou, Redsun and Radiance said that they may repurchase more bonds in the future.