Country Garden slumped over 18% in Hong Kong amid growing concerns over liquidity, reportedly proposed onshore debt extension

 

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China’s top privately-owned property developer Country Garden slumped more than 18% in Hong Kong to close at HK$0.8 on Monday amid increasing market concerns over its liquidity stress. 

Country Garden Real Estate Group, Country Garden’s subsidiary and onshore bond issuing entity, will suspend trading of its 11 onshore bonds from Monday, according to filings to the stock exchanges in Shenzhen and Shanghai on Saturday. Read more …

The homebuilder’s bonds and shares have plunged recently after it said last Tuesday that it had missed two dollar bond coupon payments due on August 6 totalling $22.5 million. 

It’s reportedly that the company is seeking to extend the payment of onshore bond that due September 2, 2023, by three years in instalments, according to Bloomberg News.  The bond has an outstanding amount of 3.9 billion yuan, according to data provider Wind.

Country Garden has proposed a 36-month principal rollover for its onshore bond that due September 2 and it has started negotiations with the holders of “16 CG Real Estate 05” on the bond extension proposal, reported Chinese news outlet The Paper.

Country Garden will take measures for credit enhancement, providing equity interests of its project companies in Longyan, Fujian province; Yantai, Shandong province; and Shuyang, Jiangsu province, etc as pledges, the report said.

The company’s Chairwoman Yang Huiyan and President Mo Bin apologised in a statement on Friday, vowing to take more powerful and effective measures to ensure home delivery and to address periodic liquidity stress. Read more …