China’s E-House may have insufficient funds to repay its $298.2mn 7.625% dollar bonds maturing today (April 18), as per an exchange filing. The developer notes that it continues to explore ways to secure the funds. As per the bond’s conditions, a default will occur if the bond is not repaid on maturity with no grace period. This comes after the company failed to succeed in an exchange offer for its existing 2022s and 2023s into new $300m into new 8% bonds due April 2025. It had also sought consent from investors to waive certain events of default and covenants. The failure came as the company did not obtain the minimum acceptance amount of 90%. It will now implement a restructuring exercise under the Cayman scheme. E-House’s dollar bonds are trading at distressed levels of 23 cents on the dollar.
Separately, Bloomberg notes that Country Garden (COGARD) is assessing investor interest ahead of a potential RMB 1bn ($157mn) bond issuance. The bonds are expected to be puttable in 2024 and have a maturity of 2026 with a coupon range of 4.6-5.8%.
In related property sector news, Ronshine China is in talks with investors to extend an RMB 1.05bn ($160mn) ABS due April 29. Its dollar bonds were trading stable at 24-29 cents on the dollar.
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