Huarong Wires Funds for $900 Million, 500 Million Yuan Bonds

China Huarong Asset Management Co. has transferred funds to repay a $900 million bond maturing June 3, according to a person familiar with the matter.

The asset management company wired funds for the principal and interest of the 3.25% bond to a trustee account, said the person, who asked not to be identified as the matter is private.

That follows payment on a 500 million yuan ($78 million) local bond maturing Sunday reported by Bloomberg earlier, citing people familiar with the matter. The 4.45% note was sold by unit Huarong Jinshang Asset Management Co., Bloomberg-compiled data show.

Huarong declined to comment on both bond payments, the local AMC had no immediate comment and a call to the clearing house went unanswered.

There have been wild swings in onshore and offshore debt sold by the state-run firm and its units over the past two weeks as investors grapple with a spate of conflicting reports over the possibility of losses for bondholders. There was also confusion over the nomination of Liang Qiang as president of Huarong. His appointment to the debt manager remains on track, people familiar with the matter have said. Caixin reported earlier this week that Liang didn’t accept the appointment.

Huarong Wires Funds for $900 Million, 500 Million Yuan Bonds

Huarong has been servicing its debt obligations since the firm delayed the release of its 2020 results at the end of March. The company has also reached funding agreements with state-owned banks to ensure it can repay the equivalent of $2.5 billion coming due through August.

The firm has some $6.2 billion of local and offshore notes it needs to repay or refinance this year, including the domestic note maturing Sunday, Bloomberg-compiled data show. Huarong’s next bond maturity is a $900 million note due June 3, which is trading at about 99 cents on the dollar.

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