Dalian Wanda Group’s dollar bonds were lower by another 3-5 points yesterday. This comes on the back of a setback to its unit’s Hong Kong IPO, where sources said that the chairman Wang Jianlin highlighted difficulties in its listing. Zhuhai Wanda Commercial Management Group, applied for an IPO in Hong Kong and requires the Chinese securities regulator’s approval under new rules. A lack of approval on the IPO could impact the group’s liquidity. The regulator has examined Wanda’s ability to repay short-term debts and said that if the IPO fails to list by end-2023, it will have to repurchase shares worth RMB 30bn ($4.4bn) from its pre-IPO investors.
Wanda’s dollar bonds have been under pressure since news about its extension of local trust loans. Debtwire had reported last week that Wanda was talking to creditors of three offshore loans worth ~$1.3bn about waving their option to demand early repayment if the IPO listing fails by early May. As per BT, a source said that Wanda and its creditors agreed extend the IPO deadline to November 30, to avoid any near-term repayment risk.
Its 7.25% 2024s fell by 5 points to 70.27 cents on the dollar.
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