After two weeks of meetings and votes, Country Garden’s bond extension plan has received approval, temporarily easing default concerns.
The plan involves extending the bond by three years and a staggering payment scheme. The outstanding principal of 3.9 billion yuan (US$540 million) has had its maturity date extended to September 4, 2026.
Investors will receive an immediate payment of 6 percent of the principal, followed by additional payments over the extended term. To instill confidence in bondholders, Country Garden has also provided equity pledges.
The extension process faced delays and required two rounds of bondholder meetings that took place online initially from August 23 to 25, but extended from August 25 to August 31. On August 29, a second bondholder meeting was called before the first had concluded.
The final vote showed a majority in favor, meeting the conditions for bondholder decisions.
