Wednesday, January 19, 2022
Martin Hennecke

Kaisa soars 14pc amid bond extension offer
<p>China&#39;s Kaisa Group (1638) said it wants to extend the maturity of a US$400 million (HK$3.12 billion) bond by a year and a half, and its share price soared by 14 percent yesterday after resuming trading.</p><p>In a filing, Kaisa said it would exchange its 6.5 percent offshore bonds due December 7 for new notes due June 6, 2023 at the same interest rate, if at least 95 percent of holders accept.</p><p>&quot;If the exchange offer and consent solicitation are not successfully consummated, we may not be able to repay the existing notes upon maturity on December 7, and we may consider alternative debt restructuring exercises,&quot; it said.</p><p>The mainland developer missed coupon payments totaling US$88.4 million due on November 11 and 12. The payments have a 30-day grace period.</p><p>Kaisa said a sharp downturn in the financing environment has limited its funding sources to meet upcoming maturities.</p><p>It recently sold a land parcel in Hong Kong to a local investor for HK$3.78 billion, recovering around HK$1.3 billion cash after repaying the loans it borrowed for the land.</p><p>Meanwhile, Far East Consortium International (0035) said it will form a joint venture with New World Development (0017) to acquire a Kai Tak property owned by Kaisa and mainland businessman Chen Zhuangrong at a total consideration of around HK$7.96 billion before excluding debt of HK$3.05 billion.</p><p>The property has a site area of about 9,708 square meters and is designated for private residential purposes with a gross floor area of 53,394 sq m, it said in an exchange filing.</p><p>The audited value of the property under development as of June 30 is approximately HK$9.79 billion, the company said.</p><p>Kaisa said in a separate filing late on Wednesday that it aims to accelerate the disposal of real estate projects and other high-quality assets to improve liquidity.</p><p>Having missed payments on onshore wealth management products totaling 1.5 billion yuan (HK$1.83 billion) due in October and November, Kaisa said it implemented repayment measures for 1.1 billion yuan and is negotiating the remainder with investors.</p><p>Separately, investors of China Evergrande (3333) were said to have offloaded around 300 million shares of the debt-ridden developer as 292 million shares were put for sale at HK$2.23 apiece yesterday morning in five orders.</p>

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