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SHANGHAI, May 27 (Reuters) – Chinese state-backed property developer Greenland Holdings (600606.SS) said on Friday it plans to extend the repayment of its $488 million offshore bond maturing in June, according to a transcript seen by Reuters. and confirmed by sources who attended an investor call.
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 swaps to ease their liquidity pressures while a few, including China Evergrande Group (3333.HK) and Sunac China (1918.HK), have defaulted on some payments.
Greenland released a filing earlier on Friday saying it would seek approval from June ticket holders to extend the refund, citing the impact of the COVID-19 lockdown in Shanghai. But the company did not provide details about the extension in the filing.
On the call to investors, Greenland said it would pay 10% of the principal amount and all interest on June 25, 2022, the due date, while the remaining amount would be paid one year later in 2023.
However, the developer said it was “fully capable” of repaying three more bond tranches due later this year on time, as the June payment was only affected by cash flow disruptions due to lockdowns. since March.
Greenland could not immediately be reached for comment.
Its April sales fell 57% from a year earlier and this month’s sales would continue to see a sharp decline, Wu Zhengkui, chief executive of Greenland’s finance department, said on the call.
He added that the company plans to sell 50 billion to 70 billion yuan ($7.5 billion to $10.4 billion) of assets including office towers and hotels over the three years to improve its cash.
($1 = 6.7061 Chinese Yuan)
Reporting by Steven Bian, Shuyan Wang and Clare Jim; Editing by Jacqueline Wong
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