Sunac China’s grace period to make a $29.5mn dollar bond coupon payment ends today on May 11, 2022. The bond in question is its 7.25% 2023s that currently trade at distressed levels of 23 cents on the dollar. As per the bond’s prospectus, a failure to make the coupon payment could trigger cross-defaults on other offshore debt.
Country Garden’s (COGARD) dollar bonds dropped 3-5 points on Tuesday with no specific reason attributed to the move. The developer on the other hand, said that restrictions imposed by Fuzhou city had been removed after customer complaints were addressed. Bloomberg notes that Fuzhou city had temporarily strengthened supervision of COGARD after customer complaints were received about a local residential project in which the developer has a stake.