Shanghai-based Greenland is the first state-backed developer to
extend a dollar bond payment since the country's property sector
plunged into a debt crisis last year.
Many private developers have already offered bond exchanges to
ease their liquidity pressures while a few, including China
Evergrande Group and Sunac China, have defaulted on some
payments.
Greenland issued a filing earlier on Friday that it would seek
the approval from holders of the June notes to extend the
repayment, citing the impact from the COVID-19 lockdown in
Shanghai. But the company did not provide extension details in
the filing.
In the investor call, Greenland said it would pay 10% of the
principal amount and all the interests on June 25, 2022, the
maturity date, while the remaining amount would be paid one year
later in 2023.
However, the developer said it was "fully capable" of repaying
on time three other bond tranches due later this year, as the
June payment was only affected by cashflow disruptions due to
lockdowns since March.
Greenland could not be immediately reached for comment.
Its sales in April dropped 57% from a year earlier and sales
this month would continue to see a big fall, Wu Zhengkui,
general manager of Greenland's finance department told the call.
He added the firm plans to sell 50-70 billion yuan ($7.5-$10.4
billion) of assets including office towers and hotels in these
three years to improve its liquidity.
($1 = 6.7061 Chinese yuan)
(Reporting by Steven Bian, Shuyan Wang and Clare Jim; Editing by
Jacqueline Wong)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
![](column_spacer.png)
|
|