(Bloomberg) — Shimao Group Holdings Ltd.’s dollar bonds rallied and its shares surged after a report that the embattled developer has put 34 projects across China up for sale, as it seeks to raise billions of dollars amid debt repayment pressures.
One of China’s largest issuers of bonds in the offshore debt market among developers, Shimao is among those in the sector trying to use asset sales to pay bills. The industry is working through a liquidity crunch caused in the wake of a government crackdown on excessive borrowing and speculation in the housing market. Regulators see asset sales as key to easing a crisis that might impede 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 Puts $12 Billion of Assets Up for Sale, Caixin Says (1)
- Evergrande Set for Long, Painful Restructuring: Company Outlook
- Developers Face Make-or-Break Moment: What to Watch in China
- Evergrande Seeks Patience From Global Investors on Repayment (1)
- Shanghai Shimao to Change Auditor for First Time in 27 Years
- China Buys a Little Time for Cash-Strapped Developers: Shuli Ren
Shenzhen SOE Drafts Purchase Plan with Kaisa Unit: Cailian (1:26 p.m. HK)
Shenzhen Investment Holdings, a company owned by the local city government, has drafted a preliminary acquisition framework with Kaisa Culture Sports & Technology Group, Cailian reported. Investors will roll out detailed investment terms before due diligence, according to the report, which didn’t give details about the planned deal.
Shimao Dollar Bonds Jump After Report of Projects Up for Sale (11:37 a.m. HK)
Shimao’s dollar notes rallied further Tuesday, putting some on pace for their highest levels in three weeks, following a Caixin report that the developer has put $12 billion of assets up for sale. The developer’s shares climbed as much as 8.4% in Hong Kong before paring gains.
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.
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 Group Co. fully paid off its $240 million 5.5% note that matured Sunday, together with interest, the builder said in a stock exchange filing late Monday. The company expects no material impact on its financial position after redemption.
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