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

China Evergrande is looking to repay offshore bondholders’ principal and interest with cash instalments and equity in two of its Hong Kong-listed units, as per sources. One of the sources mentioned that Evergrande was looking to repay principal and interest by turning them into new bonds, which will then be repaid in instalments over 7-10 years. Another source said that up to 20% of the debt can be swapped into equities of the two Hong Kong units. However, since the proposals are at an early stage, none of the above can be confirmed. The plan is said to be finalized by July. Evergrande’s dollar bonds were trading stable at ~10 cents on the dollar.

In related Chinese property sector news, Greenland Holdings is proposing an extension of its $488mn 6.75% dollar bond due June 25 by a year, as per Bloomberg. The developer’s dollar bonds collapsed in the previous week by over 20 points on a single day. Greenland’s dollar bonds due 2023-25 are now trading at less than 30 cents on the dollar.

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