Reorg on the Record || The Chinese real estate haves and have-nots… 12/08/21

What is unfolding in the China real estate industry is a dichotomy of the haves and have-nots. Weaker credits are more susceptible to negative news headlines and finding access to financing quickly evaporating. Stronger companies continue to enjoy good relationships with banks and issue new bonds. A report in November from state-funded research outfit Beijing China Index Academy revealed that certain onshore bonds issued by state-owned entities have coupon rates of 3.5% or lower, compared with industry averages of 4.4% onshore and 6.6% offshore. State-owned enterprises more readily receive support from peers, banks and government agencies. State banks are also said to have circulated so-called white lists of borrowers, or more trustworthy real estate developer debtors. The lists are dominated by central government-backed enterprises, stronger mixed ownership or privately-owned companies and state-owned concerns.

• Aoyuan Group
  China Aoyuan Group’s onshore subsidiary Aoyuan Corp. has proposed to repay investors in its overdue investment products totaling RMB 6 billion ($942 million) in installments or with properties such as apartments, office buildings, retail and parking spaces worth at least RMB 9 billion, according to a repayment proposal released to investors and seen by Reorg. » Continue Reading
• BUMI Resources
  The management of Indonesian thermal coal miner PT Bumi Resources Tbk (BUMI) said during an investor call on Thursday, Dec. 2, attended by Reorg, that it is close to renewing the mining concession for PT Kaltim Prima Coal (KPC) – due to expire on Dec. 31 – to an IUPK. » Continue Reading
• Sunac China
  Sunac China plans to use its internal cash onshore including proceeds from contracted sales and share placement to repay a total of $620 million offshore private bonds maturing by the end of December, according to a buyside source briefed on the matter and a source with direct knowledge. » Continue Reading
• Sritex
  Syndicated and bilateral lenders to PT Sri Rejeki Isman Tbk (Sritex) met with Indonesia’s Financial Services Authority (OJK) on Dec. 1 to discuss the textile maker’s in-court restructuring, or PKPU, the day before judges at the Semarang Commercial Court agreed to extend the process at a meeting held Thursday Dec. 2, said two sources with knowledge of the situation. » Continue Reading
• Kaisa Group Holdings
  Hong Kong-listed Chinese property developer Kaisa Group Holdings Ltd.’s (Kaisa) proposed an exchange offer for its upcoming $400 million 6.5% notes due yesterday, Tuesday, Dec. 7 lapsed on the Dec. 2 deadline after it failed to garner the support of investors holding a majority of the notes. This group of investors has proposed a forbearance period, to allow discussion around a more “fulsome solution for the company” and to negotiate certain new financing proposals. » Continue Reading