By HUANG Yu
Dalian Wanda Commercial Management Group said on Tuesday that it has transferred the full amount of funds required for the redemption of domestic medium-term notes (MTN) due on July 10, amounting to 1.6 billion yuan (US$230 million), to the Shanghai Clearing House.
Waiting for redemption
While bank loans constitute the main part of the debt, credit bonds still play an important role in the debt structure. Wanda Commercial Management's outstanding domestic market bonds amount to roughly 11 billion yuan. Outstanding overseas bonds reach US$1.7 billion (12 billion yuan).
In addition to the domestic medium-term notes due on July 10, Wanda Commercial Management also has a domestic medium-term note of 558 million yuan and a US0 million overseas dollar bond due for redemption in July.
Harsh environment
For Wanda Commercial Management and most private real estate enterprises, the current financing environment remains challenging.
In H1, the non-bank financing amount of real estate enterprises was about 400 billion yuan, a year-on-year decrease of 16.2 percent: credit bonds were down 7 percent, overseas bonds down by 34.6 percent, and trust financing by 69.6 percent. Asset-backed securities decreased by 4.5 percent.
Toughest of times
On June 28, Wanda Commercial Management's registration of 6 billion yuan in corporate bonds was suspended. On the same day, Wanda Commercial Management submitted an IPO application to the Hong Kong Stock Exchange for the fourth time.
This year is crucial for Wanda. If the company fails to go public this year, it will not only have to find 30 billion yuan for share repurchases but also repay at least US$1.3 billion of overseas syndicated loans.
