3-Year RMB Bond Extension Proposed, Creditor Vote Ends on 11th – Bloomberg

2023-09-06 09:45:54

After managing to make interest payments on two dollar-denominated bonds within the grace period, the next big test comes Tuesday for Chinese real estate giant Bei Gui Yuan. Creditors’ vote on the company’s proposed extension of the bond’s maturity ends on the same day.

Pekkeiyuan has proposed a three-year extension of principal payments on several yuan-denominated bonds. Voting on this will begin on the 7th and end on the 11th. The most pressing are puttable bonds with a principal balance of 1.435 billion yuan ($290 million), which will be available for redemption requests by investors on Thursday.

For this reason, the outcome of this creditors’ vote will greatly affect the future of Hekkeien. If it fails to get approval, it might hit its largest repayment in months on Wednesday. On the 24th of this month, even the larger 2 billion yuan puttable bond will be able to request early redemption.

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In addition, Hekkeien will pay interest on three offshore bonds and two yuan-denominated bonds totaling $31.6 million (regarding ¥4.7 billion) from April 14 to 19.

“The risk of future defaults for Hekkeien remains very high, and any future coupon deadline might be a risk event,” Leonard Law, senior credit analyst at LeClaw Analytics, said on Thursday. . He also said, “Heekkeewon will have to look for extensions and reorganizations for offshore bonds that are due to be redeemed in the near future.”

Hekkeien declined to comment when contacted.

news-rsf-original-reference paywall">Original title: Country Garden’s Next Major Debt Test Looms Monday as Vote Ends (excerpt)

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