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Chinese real estate developer Kaisa announces debt restructuring plan

Kaisa Group Holdings Ltd under construction in Shanghai, China on Tuesday, November 16, 2021. City Plaza development.

Qilai Shen | Bloomberg | Getty Images

Beijing — China Real Estate Developer Kaisa As China’s real estate sector continues to face pressure, it announced Thursday that it plans to temporarily ease concerns about defaults and repay investors.

Kaisa’s Hong Kong-listed stock soared 20% in the market before comparing some profits. It was the first day of trading after a suspension of almost three weeks.The developer then suspended the transaction No payment for wealth management products Early this month.

Kaisa said in a filing with the Hong Kong Stock Exchange that “repayments have been made” for an asset management product of about 1.1 billion yuan ($ 171.9 million). The developers said they are in talks to repay the remaining 396.6 million yuan in asset management products.

Separately, Kaisa said it would restructure offshore debt payments due in December by offering investors $ 380 million worth of new bonds.

According to French investment bank Natixis, Kaisa is the second largest issuer of US dollar-denominated offshore high-yield bonds among Chinese developers. Evergrande, The most indebted real estate developer in the world is number one.

As of the first half of this year, according to Natixis, Kaisa had crossed two of China’s three “red lines” for real estate developers outlined by the government.

“Tightening government policies, multiple credit events, and deteriorating consumer sentiment have temporarily closed various refinancing locations in the sector, putting great pressure on short-term liquidity, Kaisa said in a filing Thursday. “.

“Despite efforts to reduce interest-bearing debt in response to government regulations, the sharp drop in the current funding environment limits funding sources for future maturities,” the company said. I have. “

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Chinese real estate developer Kaisa announces debt restructuring plan

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