Red Star Macalline Group Debt Analysis (June 2021)

Analyzing the Red Star Macalline Group debt, our Asia Core Credit team took a deep dive into the company’s plans for the future after the company held an on-site investor event on June 9, 2021. The event gave great insight into the company’s plans to lower interest-bearing debt by RMB 10B within three years, plus the Red Star Macalline Group debt has given the company reason to repay their corporate bonds with their own cash resources or proceeds from A-share private placement if the company receives the proceeds by then. Red Star Macalline does not have any onshore issuance plan for 2021, but they do have RMB 5.5 billion onshore issuance quota left which expires in late 2022. Furthermore, The Red Star Macalline Group debt has created plans for the company to repay two onshore bonds maturing or putable in July with cash on hand.

To read our Asia Core Credit team’s full analysis of the Red Star Macalline Group debt situation as well as view the company’s full capital structure, click through here: https://reorg.com/red-star-macalline-group-interest-bearing-debt/