Chinese developer Country Garden faces fresh offshore payments deadline

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Chinese developer Country Garden faces fresh offshore payments deadline
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HONG KONG: Chinese property developer Country Garden, which missed two dollar interest payments last month, faces another deadline on Monday (Oct 9) with two coupons totalling US$66.8 million coming due

The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China on Aug 9, 2023. The coupons due on Monday are tied to Country Garden's 6.5 per cent April 2024 and 7.25 per cent April 2026 bonds.

China's largest private developer has US$10.96 billion offshore bonds and 42.4 billion yuan worth of loans not denominated in yuan. If it defaults, these debts will need to be restructured, and the company or its assets also risk liquidation by creditors.since 2021.

In a research note on Friday, UBS said property sales growth in major cities likely stayed weak in September, suggesting a limited rebound of sales despite more supportive measures to ease the property crisis.

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