Exclusive-China developers propose offshore debt maturity extension, restructuring to regulators

© Reuters. FILE PHOTO: Males work on the development web site of a highrise constructing in Beijing, China, October 18, 2021. REUTERS/Thomas Peter

BEIJING/HONG KONG (Reuters) – Some Chinese language property builders have voiced their intention to the regulators to increase their offshore bond maturities or undertake a debt restructuring, two sources with information of the matter stated, as a rising variety of defaults hits the sector.

The builders proposed the concepts at a gathering collectively held by the Nationwide Growth and Reform Fee (NDRC) and the State Administration for International Change (SAFE) on Tuesday, stated the sources.

It was not instantly clear which builders raised these proposals, and what resolution the regulators would decide on.

The regulators, nonetheless, informed builders going through giant offshore debt maturity to judge their reimbursement dangers and report difficulties, the sources stated, declining to be named as a result of sensitivity of the matter.

The event underlines the frenetic behind-the-scenes efforts by the debt-laden builders and Chinese language regulators to include the fallout centred round embattled China Evergrande Group, as worries over the liquidity disaster within the property sector mount.

“Builders have been requested to report in nice particulars about all their offshore bond reimbursement plans; they should voice out if there are explicit funds (for which) they’re seeing some difficulties in reimbursement,” one of many sources stated.

NDRC stated in a press release late on Tuesday that the regulators have requested the unnamed corporations within the assembly to optimise their overseas debt buildings and proactively put together for reimbursement of each principal and curiosity on their overseas bonds.

They informed the overseas debt issuers to make use of funds for authorized functions and “collectively keep their very own reputations and the general order of the market”.

Particulars of the assembly, together with proposals from the builders who attended the assembly, haven’t been disclosed.

The assembly with the regulators passed off in Beijing on Tuesday towards the backdrop of builders Fantasia Holdings Group, Sinic Holdings and Trendy Land defaulting on their maturing greenback bonds this month.

The liquidity disaster in China’s $5 trillion property sector has been, partially, fuelled by Evergrande, which is teetering on the point of collapse with greater than $300 billion in debt and is struggling to fulfill fee obligations.

SAFE and NDRC didn’t reply to Reuters request for remark.

A complete of eight builders together with Kaisa Group, Shimao and Sino-Ocean Group attended the assembly on Tuesday, monetary media outlet Caixin reported on Wednesday.

China Vanke, Central China Actual Property and Oceanwide Holdings have been additionally among the many attendees, the 2 sources, who’ve direct information of the discussions, informed Reuters.

Vanke declined to remark. Kaisa confirmed its participation within the assembly, with out additional elaboration. Central China, Oceanwide, Shimao and Sino-Ocean Group didn’t reply to request for remark.

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