Country Garden Real Estate Group, the subsidiary of embattled property developer Country Garden, has proposed to extend the maturit of its privately issued onshore bond due September 2 for three years, reported Chinese real estate news outlet Guandian Property.
The outstanding principle of the bond is 3.904 billion yuan and the issuer has proposed to make the interest payment upon maturity and to extend the principal payment for 3 years, with 2% of the principal to be paid in the first, second and third months after maturity, 10% in the 12th month, 15% in the 24th, 25% in the 30th month, and the remaining 44% in the 36th month, according to the report.
In addition, the company has pledged equity interests in projects in Longyan (Fujian), Yantai (Shandong), Shuyang (Jiangsu), Huai’an (Jiangsu) and Xinghua (Jiangsu) as collateral, it said.
Bloomberg News, citing a filing submitted to the Shanghai Stock Exchange’s private disclosure platform, reporte that some holders of the bond demanded a full repayment.
The homebuilder is planning to hold a voting session regarding the extension proposal and demand on full repayment at a bondholder meeting that is slated to be held between 23 August and 25 August, the report said.