Sales of Logan Plans assets; Debt Financing Issues: Evergrande Update

(Bloomberg) – Logan Group Co. plans to divest about 6 billion yuan ($949 million) of assets amid tight cash flow, The Paper reported, joining other automakers seeking to raise cash through through divestments.

As concerns grow over several property companies’ debt repayments, Bloomberg Intelligence says the closure of onshore and offshore bond markets to struggling developers for fundraising could threaten their survival. On Thursday, Fitch Ratings cut the debt scores of Times China Holdings Ltd. from BB- to B+, citing the company’s “weakened financial flexibility”.

A gauge of Chinese property developers plunged as much as 4.7% at the lowest intraday price since July 2016, alongside weakness in risky assets in Asia. Dollar bonds of higher-rated names such as Country Garden Holdings Co. and CIFI Holdings Group Co. were on course for record weekly declines and led to further declines on Friday for Chinese developer ratings.

Key developments:

  • Debt rollover halt pushes Chinese developers to breaking point
  • Junk Yields Are About To Hit An All-Time High Of 25%: What To Watch For In China
  • Times China downgraded to B+ by Fitch (1)
  • Chinese developers’ credit stress may not have peaked yet
  • Logan Group reportedly made coupon payment on 2024 dollar bond
  • Shimao Group faces $2.5 billion in bond payments this year
  • Logan will ask for an 18-month extension for the full repayment of the local obligation

Sunac Unit Gets Approval to Add Sale Date for 2024 Onshore Bond (11:52 a.m. HK)

Sunac’s key onshore unit won approval from bondholders this week to add a 2023 put date on a 4 billion yuan bond maturing in 2024, according to a leaked document Thursday with the venue. disclosure of private information from the Shanghai Stock Exchange and seen by Bloomberg.

Logan plans to dump 6 billion yuan in assets: The Paper (9:31 a.m. HK)

Logan Group plans to divest about 6 billion yuan of assets amid tight cash, although there is no detailed list of affected assets, The Paper reported late Thursday, citing an unnamed executive from the developer. immovable.

The company has “voluntarily” halted construction on some projects, the executive said during a meeting with creditors on Thursday.

Debt rollover halt pushes developers to breaking point: BI (8:18 a.m. HK)

According to Bloomberg Intelligence, distressed Chinese developers who do not have access to bond markets for refinancing face growing default risk amid falling home sales, slow asset disposals and reluctance of banks to lend.

State-backed companies, along with Longfor Group Holdings Ltd., CIFI and Country Garden, are poised to gain market share if their funding channels remain open, analyst Kristy Hung wrote.

Times China Cut to B+ by Fitch (5:08 PM HK)

Times China’s ratings were downgraded by Fitch to B+ from BB-, citing the property company’s “weakened financial flexibility” due to slower fundraising and limited access to capital markets.

Fitch has a negative ratings outlook, reflecting “uncertainty over its ability to refinance its capital markets maturities due in 2023, as the offshore bond market remains inaccessible to the company.”

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Carol M. Barragan