Stocks

China’s Kaisa offers bondholders exchange offer on existing bonds By Reuters

© Reuters. FILE PHOTO: A picture shows the Kaisa Plaza of Kaisa Group Holdings Ltd on a hazy day in Beijing, China, November 5, 2021. REUTERS/Thomas Peter/File Photo

(Reuters) – Chinese developer Kaisa Group said on Thursday it is offering bondholders an option to exchange their existing bonds with new bonds having an extended maturity, in an attempt to improve its financial stability and continue to stay afloat.

The embattled property developer is offering exchange for at least $380 million, or 95% of the outstanding principal of existing notes listed on the Singapore Exchange (OTC:), it said in a statement https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1125/2021112500037.pdf.

“If the exchange offer and consent solicitation are not successfully consummated, we may not be able to repay the existing notes upon maturity on Dec. 7, and we may consider alternative debt restructuring exercise,” Kaisa said.

Kaisa has the most offshore debt of any Chinese developer after China Evergrande Group, and has not paid coupons totalling over $59 million due on Nov. 11 and 12, with 30-day grace periods for both.

Chinese developers are facing an unprecedented liquidity squeeze due to regulatory curbs on borrowings, causing a string of offshore debt defaults, credit rating downgrades and sell-offs in some developers’ shares and bonds in recent months.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button