(Bloomberg) — Shimao Group Holdings Ltd.’s dollar bonds climbed after a report that the developer has put 34 projects across China up for sale, as the embattled firm seeks to raise billions of dollars amid mounting debt repayment pressures.
The company is among Chinese real-estate companies that are selling assets to pay bills during a liquidity crunch following a government crackdown on excessive borrowing and speculation in the housing market. Regulators see asset sales as key to easing the crisis that’s impeding an economic recovery.
China Evergrande Group urged offshore bondholders not to adopt aggressive legal action over repayments and asked for more time to make a risk disposal plan, after a group of overseas creditors threatened enforcement measures.
Key Developments:
- Shimao Seeks Billions of Dollars From Asset Sales, Caixin Says
- Evergrande Set for Long, Painful Restructuring: Company Outlook
- Evergrande Seeks More Time From Offshore Investors on Repayment
- Shanghai Shimao to Change Auditor for First Time in 27 Years
- Developers Face Make-or-Break Moment: What to Watch in China
- China Property M&A Deals Pick Up in Relief for Developers
- China Buys a Little Time for Cash-Strapped Developers: Shuli Ren
Logan Says Private Bond Guarantees Do Not Exceed $1b (10:30 a.m. HK)
Logan Group Co. told investors Friday that it guaranteed no more than $1 billion in private placement notes, according to a report by REDD. The company’s management disclosed the amount in a call with investors on Friday following market rumors that the level ranged from $2 billion to $3 billion, REDD reported, citing two sources briefed on the matter.
Shimao Dollar Bonds Climb on Report of Projects Up for Sale (9:53 a.m. HK)
Shimao’s dollar notes are extending gains, following a Caixin report that the developer has put 34 projects up for sale as it seeks to raise billions of dollars.
Co.’s 4.75% note due July 3 rose 3.2 cents on the dollar to 64.8 cents, set for its highest price in almost three weeks, Bloomberg-compiled prices show as of 9:50am in Hong Kong.
Developers Face Make-or-Break Moment (8:44 a.m. HK)
The upcoming earnings season for Chinese developers will be make-or-break for many firms as auditors examine their books for the first time since the liquidity crisis spread.
Auditors will be focused on firms’ ability to deliver homes, as well as their cash flow and liquidity estimates, according to Citi note dated Monday. But the lack of visibility for many property firms complicates their accounting. Auditors are likely to only sign off on the report on the last day required by the Hong Kong exchange — March 31.
Shimao Seeks Billions of Dollars From Asset Sales, Caixin Says (8:14 a.m. HK)
The assets are residential, office, commercial and hotel projects in 17 cities including Beijing, Shanghai and Hangzhou and in the Greater Bay Area in southern China, Caixin cited documents as saying.
Shimao is asking for 42.2 billion yuan ($6.7 billion) for 15 of the projects, the report said. The remaining 19 are either joint ventures or projects in an initial investment stage in which the developer has invested a combined 32.5 billion yuan, it said.
Evergrande Seeks More Time From Offshore Investors on Repayment (8:00 a.m. HK)
The developer is seeking more time from overseas investors to fully consider uncertainties and risks in order to make a debt risk disposal plan that will protect the interests of various parties, the company said in a statement.
Evergrande is drafting a detailed debt restructuring plan and is actively maintaining dialog with offshore creditors, it said. The company faced coupon payment deadlines totaling $352.5 million on Monday.
CIFI Holdings Repays 5.5% Senior Notes Due 2022 in Full (6:35 a.m. HK)
CIFI Holdings has repaid its 5.5% notes that matured on Jan. 23 in full at their outstanding principle amount of around $240m, together with interest, it said in a stock exchange filing late Monday. The firm said it expected no material impact on its financial position after redemption.
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