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China Developers Face $1.3 Billion in December Bond Payments

China’s Developers Face $1.3 Billion in December Bond Payments

China’s stressed developers face nearly $1.3 billion of bond payments in December, after a month in which investor sentiment toward the property sector showed signs of stabilizing despite fresh signs of liquidity pressure.

The total was $2 billion in November, and there have been no defaults reported according to Bloomberg-compiled data as of Friday, after multiple instances in October. Still, investor scrutiny persists regarding principal and interest payments as a cash crunch engulfs the real estate industry. Center stage is China Evergrande Group and Kaisa Group Holdings Ltd., two of the country’s biggest dollar-bond issuers. An Evergrande unit and Kaisa have grace periods ending by mid-December on a combined $170.9 million of coupons. 

China Developers Face $1.3 Billion in December Bond Payments

November saw yields on a Bloomberg gauge of riskier notes surge to a record 24.6% early in the month before pulling back, amid signals that softer policies are on the way for property firms. But at around 20%, yields remain too high for most builders that need to refinance imminently maturing debt. Meanwhile, billionaire owners of Chinese developers have dipped into their own pockets and a reported plan to loosen controls for builders issuing local-currency bonds is likely to benefit only higher-quality firms, say analysts.

China Developers Face $1.3 Billion in December Bond Payments

Below is a week-by-week calendar for principal and coupon payments due on dollar and local bonds for firms among the top 16 developers whose debt offers the worst year-to-date returns on a Bloomberg index of China high-yield dollar bonds. Some coupons may have grace periods unless otherwise stated, and the data excludes defaulted firms and those with less than $500 million of dollar bonds outstanding.

Week 1 (Nov. 29-Dec. 5) - $198 million

  • Kaisa $17.5 million coupon on note due 2026, first deadline Dec. 1
  • Kaisa’s exchange offer of at least 95% of its $400 million note will expire 4pm London time Dec. 2
  • Ronshine China Holdings Ltd. $136.6 million note due Dec. 3, plus $3.58 million in interest
  • Yango Justice International Ltd. $11 million coupon on note due 2024, first deadline Dec. 4
  • Agile Group Holdings Ltd. $29.3 million coupon on 8.375% perpetual bond, first deadline due Dec. 4

Week 2 (Dec. 6-Dec. 12) - $598.4 million

  • Scenery Journey Ltd. $41.9 million coupon on note due 2022, grace period ends Dec. 6
  • Scenery Journey $40.6 million coupon on note due 2023, grace period ends Dec. 6
  • Kaisa $400 million note due Dec. 7, plus $12.9 million in interest
  • Ronshine $12.8 million coupon on note due 2023, first deadline Dec. 9
  • Yango (Cayman) Investment Ltd. $1.8 million coupon on note due 2024, first deadline Dec. 10
  • Kaisa $58.5 million coupon on note due 2025, grace period ends Dec. 11
  • Kaisa $29.9 million coupon on note due 2023, grace period ends Dec. 12

Week 3 (Dec. 13-Dec. 19) - $15.1 million

  • Ronshine $15.1 million coupon on note due 2023, first deadline Dec. 15

Week 4 (Dec. 20-Dec. 26) - $34.1 million 

  • China Aoyuan Group Ltd. $7.35 million coupon on note due 2023, first deadline Dec. 21
  • China Aoyuan $7.95 million coupon on note due 2024, first deadline Dec. 21
  • China South City Holdings Ltd. $18.8 million coupon on note due 2022, first deadline Dec. 26

Week 5 (Dec. 27-Dec. 31) - $414.1 million

  • Evergrande $50.4 million coupon on note due 2023, first deadline Dec. 28
  • Evergrande $204.8 million coupon on note due 2025, first deadline Dec. 28
  • Xinyuan Real Estate Co Ltd. 30.95 million yuan ($4.84 million) coupon on note due 2022, first deadline Dec. 29
  • Kaisa $48.75 million coupon on note due 2022, first deadline Dec. 30
  • Kaisa $105.35 million coupon on note due 2024, first deadline Dec. 30

©2021 Bloomberg L.P.

With assistance from Bloomberg