SHANGHAI/BEIJING (Reuters) – China’s largest real estate developer Country Garden has obtained agreement from its creditors to postpone the repayment of six onshore bonds by three years, two sources familiar with the matter said on Tuesday.
On the Hong Kong Stock Exchange, Country Garden shares closed up 3.88% after gaining up to 9.7% following this information.
The announcement of the postponement of the debt maturity comes as investors closely follow the latest measures taken by Beijing to lower the cost of existing property loans and offer preferential rates to first-time buyers in order to emerge from a deep crisis real estate.
Creditors of Country Garden, put in difficulty by heavy debt, voted on Monday to postpone for three years the payment of eight onshore bonds worth a total of 10.8 billion yuan (1.38 billion euros), said indicated the sources.
Following the vote, creditors approved the extension of the repayment deadline for six of the eight bonds, they added.
The vote on the two other bonds was postponed, the two sources said on condition of anonymity.
Country Garden did not immediately respond to a request for comment.
The group had already managed at the beginning of the month to obtain the agreement of its creditors to postpone for three years the payment of an onshore private bond worth 3.9 billion yuan (499.1 million euros). .
Last week, he paid a coupon in dollars at the last minute to avoid an immediate default.
(Reporting Shuyan Wang in Beijing, Jing Bian in Shanghai and Xie Yu in Hong Kong; Blandine Hénault for the , edited by Nicolas Delame)
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