Chinese Kaisa seeks to prolong maturity of $ 400 million offshore bond, shares rise

A photograph exhibits the Kaisa Plaza of Kaisa Group Holdings Ltd on a foggy day in Beijing, China, November 5, 2021. REUTERS / Thomas Peter / File Photograph

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HONG KONG, Nov 25 (Reuters) – Chinese true estate developer Kaisa Team (1638.HK) explained Thursday it options to lengthen the maturity of a $ 400 million bond by a calendar year and a half – element of its initiatives to prevent a messy default and solving a liquidity crisis.

If at the very least 95% of the holders of the offshore bond accept his give, they will swap the 6.5% notes maturing on December 7 for new bonds maturing on June 6, 2023 at the exact interest rate, he explained in a paper from the society.

Kaisa, which has the most offshore credit card debt of any Chinese developer considering that China Evergrande Team (3333.HK), skipped coupon payments totaling more than $ 59 million because of on November 11 and 12. Payments have a 30 working day grace time period.

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Shares of Kaisa, which resumed investing for the very first time since the suspension on November 5, were being up 13% in early exchanges with investors buoyed by an try to solve her payment complications.

Chinese developers are going through an unprecedented liquidity squeeze due to regulatory limits on lending, creating a series of offshore credit card debt defaults, credit history ranking downgrades, and provide-offs of some developers’ shares and bonds in current months.

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Kaisa sought to raise money by divesting some of her enterprises, together with her Hong Kong-stated assets administration unit (2168.HK).

The developer also mentioned in a individual doc late Wednesday that it is looking to accelerate the divestment of serious estate projects and other higher-top quality belongings to improve its liquidity.

($ 1 = 6.3884 Chinese yuan)

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Sameer Manekar claimed in Bengaluru and Clare Jim in Hong Kong Enhancing by Edwina Gibbs

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