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Chinese developer Radiance Holdings Group defaulted on its outstanding $300mn 7.5% bond that matured on March 20. The company missed the payment amid contracting sales and said that it will “exert its utmost effort” to ensure property delivery. Just over the past week, its bond price soared to 88 cents from distressed levels of around 50 cents on the dollar. Radiance was China’s 50th biggest developer by sales in 2023 and becomes the latest in the nation’s property sector to default on its offshore debt. In late-2023, its onshore unit sold two local bonds guaranteed by state-owned China Bond Insurance. Being among the few developers having access to local refinancing support yet defaulting, Bloomberg notes that the default could further weaken investor confidence.
Separately, China Aoyuan has successfully completed its offshore debt restructuring and thereby ensured that it avoids default. Aoyuan will swap $6.1bn of offshore debt to reduce liabilities by $4.9bn over the next eight years. The restructuring consists of four new bonds totaling $2.3bn, a $1.6bn perpetual bond, $1.4bn in common stock and $143mn in convertible notes.