anticipated maturities
As China’s broader real estate debt crisis enters its fourth year; The tests for Country Garden, once the largest real estate developer in the country, are far from over. More maturities loom for the debt of the builder, which has obligations of nearly $187 billion.
Country Garden must pay a total of $22.5 million to pay off two dollar vouchers during a grace period that ends September 5-6 in order to
Do not face default. Markets were jolted when the initial deadline for those payments was missed last month, with Chinese dollar junk bonds – mostly issued by real estate developers – dropping to their lowest levels this year. Country Garden has not commented yet, knowing that it was contacted after working hours.
The Hardships of Country Garden: The Good, the Bad, and the Worst
The company headed by Yang Huiyan, one of China’s richest women, is of great importance to China’s economy because of its sheer size, with more than 3,000 housing projects in smaller cities and about 70,000 employees.
The situation gave Country Garden the strength to weather the cash crunch in the industry that has led to record defaults since the China Evergrande Group defaulted on the bonds for the first time in 2021.
But a slump in the industry threatens that resilience, and a default for Country Garden, now China’s sixth-largest construction company by contract sales, risks worse consequences than an Evergrande default, given that it has increased the size of its real estate projects by four. double.
2023-09-02 18:12:00
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