By NIU Yu
Dalian Wanda has repaid a US$ 400 million (2.9 billion yuan) bond while seeking to emphasize the stability of its operations.
Several rating agencies have downgraded Wanda, with Moody's and Standard and Poor's foreseeing repayment pressure in the next 12 months. However, considering the current situation, Wanda is showing signs of improvement.
In June, Wanda Real Estate and Vanke were involved in a dispute over a project in Changchun, resulting in the freezing of 2 billion yuan in equity of Dalian Wanda Commercial Management. Now Wanda and Vanke have reached a settlement, and the equity will be unfrozen, crucial to Wanda Commercial Management's impending IPO.
On June 28, Zhuhai Wanda Commercial Management submitted an IPO application to the Hong Kong Stock Exchange for the fourth time. Whether they can be listed as scheduled by the end of the year is of paramount importance to Wanda due to a mountain of debt tied to the listing.
This year, Wanda Commercial Management has started to recover. According to their data, H1 rental income is up 4.5 percent and net rental income is up 7.2 percent.
Within the past two weeks, Wanda Commercial Management has repaid around 5 billion yuan of public debt. Despite unfavorable news, all large public debts have been repaid on time, maintaining credibility and moving the listing process forward.
