Country Garden Secures Funds for January Dollar Bonds

Country Garden Holdings Co. has told some investors that it has prepared funds to repay dollar debt due in January, according to people familiar with the matter, after a series of fundraising efforts.

(Bloomberg) — Country Garden Holdings Co. has told some investors that it has prepared funds to repay dollar debt due in January, according to people familiar with the matter, after a series of fundraising efforts.

The nearly $700 million of dollar bond principal and coupons coming due is the biggest repayment test in months faced by the country’s top developer, according to Bloomberg-compiled data. The builder has a $617 million principal due on Jan. 17, as well as six coupons due in coming weeks.

The people asked not to be identified discussing a private matter. Country Garden declined to comment.

Country Garden has embarked on an aggressive fundraising campaign in recent months. The developer has raised more than $1.4 billion from three additional share sales since July. It also has issued 3.5 billion yuan ($516 million) of bonds guaranteed by state-backed entities via its key onshore unit since September, in addition to securing a $280 million loan for refinancing last month. The developer also borrowed about $650 million through an interest-free loan from its co-chairman’s company last month.

These financing activities have boosted confidence that the developer will likely enjoy a faster recovery in the sector. Shares of Country Garden have nearly tripled since late October after the Chinese government issued a clutch of measures to bolster the battered real estate sector that accounts for about a quarter of the nation’s economy.

Country Garden’s 4.75% dollar bond maturing Jan. 17 rose 0.3 cents on the dollar to 99.1 cents Tuesday morning, according to prices compiled by Bloomberg. Many of its longer-dated bonds dipped slightly after rebounding strongly to more than 60 cents from the record low of about 10 cents in late October.

READ: Country Garden Stocks Triple on Funding, China Property Support

Below are payments due this month, compiled by Bloomberg

Jan. 12, 2.7% bond due 2026, $9.45m coupon
Jan. 12, 3.3% bond due 2031, $11.55m coupon
Jan. 14, 5.125% bond due 2027, $14.09m coupon
Jan. 14, 5.625% bond due 2030, $12.66m coupon
Jan. 17, 4.75% bond due 2023, $617m principal and $14.65m coupon
Jan. 17, 5.125% bond due 2025, $19.22m coupon

(Updates with more fundraising activities in the fourth paragraph, bond reaction in the sixth.)

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