SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Country Garden (COGARD), has offered to buyback a $683mn bond ahead of its maturity date of July 25. Based on their filing, Country Garden intends to finance the repurchase with their internal cash holdings. SCMP notes that such a move will likely boost investors’ confidence in its ability to comfortably fulfill its short term debt obligations over the next 6-12 months. SCMP further added that the buyback highlights COGARD’s healthy balance sheet in relation to its peers, who have not been able to afford such moves. Raymond Cheng, head of China and Hong Kong research at CGS-CIMB Securities said, “Given the offer is made just over a month in advance of the maturity date, it appears a move to demonstrate its financial capability and to dispel speculation that it may have liquidity issues amid incessant negative news about the industry’s debt troubles.” The 4.75% 2022s are currently trading at 99.5.

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