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.Â
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.Â
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.Â
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.Â
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.Â
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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