Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

IBF-STS
8 CACS CPD Hours

29 September 2022 (Thursday) | 9am-5pm

Chinese developer Tus-Holdings expects to default on two of its dollar bonds due in 2024, as per its HKEX filing. The bonds in question are its $380mn 7.95% 2024s and $522.5mn 6.95% 2024s issued by Tuspark Forward and guaranteed by Tus-Holdings. Tus-Holdings said that certain interest and instalment of the principal amount on the bonds were due on August 13. For the principal obligation, there is a 15-day grace period and for the interest payments, there is a 7-day grace period. For context, in July 2021, the developer launched a consent solicitation asking bondholders to waive a default event and extend the maturity of both bonds to May 13, 2024. As part of the transaction, Tus-Holdings had to repay 65% of the principal amount after 12 months, and 35% after 24 months. The developer has now said that it will not be able to meet both the obligations and has hired advisers for a restructuring of the bonds.

Tus’s dollar bonds were trading flat – its 7.95% 2024s were at 40 cents on the dollar and its 6.95% 2024s were at 26 cents on the dollar.
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