Reuters is offering Chinese bonds to existing bondholders in exchange for existing bonds
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(Reuters) – Chinese developer Kaisa Group said on Thursday it would offer bondholders an opportunity to exchange existing bonds with new ones with long-term bonds in order to improve their financial stability and move forward.
The property developer offers an exchange of at least $ 380 million, or 95% of the outstanding headline rating listed on the Singapore Exchange (OTC :), it said in a statement.
“If the exchange offer and consensus request are not properly met, we may not be able to return the banknotes due by December 7, and we may consider alternative debt restructuring exercises,” Kaisa said.
Kaisa has the largest offshore debt of any Chinese developer behind the China Evergrande Group, and on November 11 and 12 paid no more than $ 59 million in coupons, with 30-day grace periods for both.
Chinese developers are facing unprecedented tight liquidity as a result of regulatory cuts in debt, declining credit ratings of developer shares and bonds in recent months, and sell-offs due to offshore debt defaults.
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