By WANG Tingting
One of the biggest players in China's real estate market, County Garden, is seeking an extension for a bond worth 3.9 billion yuan (US$540 million) following a series of bond defaults and extensions that have rocked an already quite rocky real estate sector.
At the heart of Country Garden’s plan are 2016 non-public corporate bonds. The company will offer a three-year extension for the bond, with interest paid at maturity and without an upfront cash payment. The approach is currently with selected bondholders.
Despite once being an exemplar of private developers, Country Garden now grapples constantly with liquidity constraints. The company is broke, with a debt of 5.9 billion yuan due in September.
Market observers are closely monitoring how this first bond extension effort will unfold for Country Garden. The company’s subsequent moves, especially concerning its future bond maturities, will provide insights into the evolving landscape of real estate financing and management in China.
