UPDATE 5: 5:33 a.m. ET 9/5/2023: Country Garden Real Estate Group Co.
proposed to postpone the principal and interest payment by three years to Nov. 3, 2026, under its CNY 1.778 billion ($243.4 million) 4.15% bond putable Nov. 3 “H20 Bi Di 4” via installments.
The issuer will pay small debt claims of no more than CNY 100,000 to bondholders on Dec. 3, and 2% of the principal amount on the same day for three consecutive months starting from Dec. 3. It will then pay 10% and 15% of the principal along with corresponding interests on Nov. 3, 2024 and Nov. 3, 2025, respectively, and 25% of the outstanding principal on May 3, 2026. The remaining 44% of principal and the corresponding interest will be paid on Nov. 3, 2026.
As credit enhancement, the company proposed to pledge equity stakes in project companies in Qingdao, Lufeng, Shaanxi, and Ningguo, and provide cash sweeps from projects in Xuzhou, Handan, Huixian, Chifeng, Hohhot, Pingquan, Qingyuan, Suqian, Dongguan and Yuanling. If the proposal is approved, the issuer will also provide the highest amount of guarantee for “H20 Bi Di 4” with the land assets in Peixian.
The issuer also proposed to add a grace period of 30 consecutive trading days for the bond, according to the announcement.
UPDATE 4: Country Garden Subsidiaries Propose 3Y Extension Plans Under “H1 Bi Di 01,” “H20 Bi Di 3,” “H16 Tengyue 2” Via Installments; Small Debt Claims; 30 Days Grace Period on 2 Bonds
UPDATE 4: 10:47 p.m. ET 9/4/2023: Country Garden Real Estate Group Co. and Guangzhou Giant Leap Construction Co. Ltd., two subsidiaries of Country Garden Holdings, proposed three-year extension on three corporate bonds, including CNY 2 billion ($274.7 million) 4.8% “
H1 Bi Di 01”putable March 12, 2024, CNY 2 billion 4.38% bond putable Sept. 24 “
H20 Bi Di 3” and the outstanding CNY 492.3 million 4.5% corporate bond due Oct. 21 “
H16 Tengyue 2.”
For “H1 Bi Di 01,” the issuer proposed to postpone the payment date to March 12, 2027, and will pay small debt claims of no more than CNY 100,000 to bondholders on April 12, 2024.
Apart from the small debt claims, the company said it will pay 2% of the outstanding principal for three months starting from April 12, 2024, and 10% and 15% of the principal amount, along with corresponding interests on March 12, 2025 and March 12, 2026. It will also pay 25% of the principal on Sept. 12, 2026 and the remaining 44% together with the corresponding interest will be paid on March 12, 2027.
As credit enhancement, Country Garden Real Estate proposed to pledge equity stakes in the project companies in Huailai, Zhanjiang and Taiyuan, and provide cash sweeps from projects in Tongliao, Inner Mongolia, Huangshan, Qidong and Dawu, and to pledge a commercial asset in Guiyang. The credit enhancement will be shared with CNY 1.1 billion 4.8% corporate bond putable June 2024 “H1 Bi Di 02,” according to the announcement.
The company also proposed to add a grace period of 30 consecutive trading days for “H1 Bi Di 01”.
For the “H20 Bi Di 3” bond, the issuer will pay small debt claims on Oct. 24, and 2% of the principal amount for three consecutive months starting from Oct. 24. It will pay 10% and 15% of the principal along with interests on Sept. 24, 2024 and Sept. 24, 2025, respectively, and 25% of the outstanding principal on March 24, 2026. The remaining 44% of principal and the corresponding interest will be paid on Sept. 24, 2026.
The issuer proposed pledge equity stakes in project companies in Qingdao, Lufeng, Shaanxi, and Ningguo, and provide cash sweeps from projects in Xuzhou, Handan, Huixian, Chifeng, Hohhot, Pingquan, Qingyuan, Suqian, Dongguan and Yuanling as credit enhancement. The credit enhancement will be shared with its CNY 1.435 billion 4.33% corporate bond putable Sept. 14 “H1 Bi Di 03,” its CNY 1.778 billion 4.15% corporate bond putable Nov. 3 “H20 Bi Di 4,” its CNY 3 billion 4.98% corporate bond due Nov. 20 “H19 Bi Di 3” and its CNY 1 billion 6.3% corporate bond putable Dec. 27 “H1 Bi Di 04.” If the proposal is approved, the issuer will provide the highest amount of guarantee for the aforementioned bonds with the land assets in Peixian.
In respect of “H16 Tengyue 2,” the issuer proposed to postpone the principal and interest payments by three years to Oct. 21, 2026, via installments. It will pay small debt claims of no more than CNY 100,000 to holders on Nov. 21 and 2% of the principal on the same day of three consecutive months starting from Nov. 21. The company will then repay 10% and 15% of the outstanding principal with corresponding interests on Oct. 21, 2024 and Oct. 21, 2025, respectively, and 25% of the principal on April 21, 2026. The remaining 44% of the principal and interest will be paid on Oct. 21, 2026.
As credit enhancement, Guangzhou Giant Leap Construction proposed to pledge 96.1% and 100% equity stakes in the project companies in Lufeng and Hainan, respectively. It also plans to add a grace period of 30 trading days for the bond.
The companies will convene bondholders meetings on the three bonds from Sept. 7 to Sept. 11 to vote on the proposals, the announcement shows.
UPDATE 3: Country Garden Says ‘21 Bi Di 01,’ ‘21 Bi Di 02,’ ‘21 Bi Di 03,’ ‘21 Bi Di 04’ to Be Traded on SZSE Fixed Income Securities Trading System From Aug. 18
UPDATE 3: 9:17 p.m. ET 8/16/2023: Country Garden Real Estate Group Co., a subsidiary of Country Garden Holdings,
announced to the Shenzhen Stock Exchange on Aug. 16, that four of its onshore corporate bonds will be traded on the Shenzhen Stock Exchange Fixed Income Securities Trading System from Aug. 18.
The bonds include its CNY 2 billion ($276.6 million) 4.8% “21 Bi Di 01”putable March 12, 2024, CNY 1.1 billion 4.8% “21 Bi Di 02” putable June 15, 2024, CNY 1.435 billion 4.33% “21 Bi Di 03” putable Sept. 14 and CNY 1 billion 6.3% “21 Bi Di 04” putable Dec. 17. The four bonds will be known as “H1 Bi Di 01,” “H1 Bi Di 02,” “H1 Bi Di 03” and “H1 Bi Di 04,” respectively, while trading on the system, the announcement shows.
UPDATE 2: Country Garden Says Onshore Bonds ‘19 Bi Di 03,’ ‘20 Bi Di 03,’ ‘20 Bi Di 04,’ ‘16 Tengyue 02’ Repayments Uncertain, to Be Traded on SSE Fixed Income Securities Trading System From Aug. 18
UPDATE 2: 6:16 a.m. ET 8/16/2023: Country Garden Real Estate Group Co., a subsidiary of Country Garden Holdings,
disclosed to the Shanghai Stock Exchange today, Aug. 16, significant uncertainty around repayments of three onshore corporate bonds.
The three bonds include its outstanding CNY 992.7 million ($136 million) 4.98% bond due Nov. 20 “19 Bi Di 03,” CNY 2 billion 4.38% bond putable Sept. 24 “20 Bi Di 03” and CNY 1.778 billion 4.15% bond putable Nov. 3 “20 Bi Di 04,” the announcement shows.
As reported, the company announced earlier this week trading suspension of its 11 onshore bonds. From Aug. 18 on, “19 Bi Di 03,” “20 Bi Di 03,” “20 Bi Di 04” will be traded on the Shanghai Stock Exchange Fixed Income Securities Trading System from Aug. 18.
In a separate
announcement, Guangzhou Giant Leap Construction Co. Ltd., a subsidiary of Country Garden, said its outstanding CNY 492.3 million 4.5% corporate bond due Oct. 21 “16 Tengyue 02” will also be traded on the system from Aug. 18. Repayment is uncertain, the announcement shows.
UPDATE 1: Country Garden’s Onshore Bonds Suspended, Co. to Communicate With Holders
UPDATE 1: 9:54 p.m. ET 8/13/2023: Country Garden Holdings Co. Ltd.’s onshore corporate bonds have all been suspended today, Aug. 14.
The suspended bonds are the company's onshore private bond “
16 Bi Yuan 05,” subsidiary Country Garden Real Estate Group Co. Ltd.’s corporate bonds “
19 Bi Di 03,” “20 Bi Di 03” and “20 Bi Di 04,” on the Shanghai Stock Exchange, its corporate bonds “
21 Bi Di 01,” “21 Bi Di 02,” “21 Bi Di 03,” “21 Bi Di 04,” “22 Bi Di 02” and “22 Bi Di 03” on the Shenzhen Stock Exchange, and subsidiary Guangdong Giant Leap Construction Co. Ltd.’s “
16 Teng Yue 02” on the Shanghai Stock Exchange.
The suspension announcements cited Country Garden’s Aug. 10 profit warning announcement to the Hong Kong exchange, in which the company
stated the difficult situation facing the real estate industry.
The company said it will conduct full communication with bondholders and conscientiously perform information disclosure obligations in strict accordance with the requirements of relevant laws and regulations.
Country Garden also said that it will continue implementing various operating strategies and risk mitigation measures to maintain sustainable and healthy development of the company and safeguard the legitimate rights and interests of investors.
Original Story 8:25 p.m. UTC on Aug. 13, 2023
Country Garden Suspends Trading in All Onshore Bonds Effective Today, Aug. 14
Relevant Document:
Announcement
Country Garden Holdings Company Ltd. announced to the Hong Kong stock exchange on Aug. 13 that it has applied to the Shanghai Stock Exchange and Shenzhen Stock Exchange to suspend trading in all onshore corporate bonds, with effect from today, Aug. 14.