Embattled Chinese developer Country Garden said it is unable to pay onshore coupons due on Thursday but it aims to make the payment and additional interest incurred by May 13, within the grace period.
The developer which defaulted its $11 billion offshore bonds and extended its onshore bond repayments late last year, said in a filing that if it still failed to pay the coupons by the end of a grace period, state-owned China Bond Insurance Co would undertake the credit enhancement obligations as a guarantor.
Country Garden has two coupons totalling 65.95 million yuan (USD9.1 million) due on Thursday.
Both medium-term notes, with an outstanding 800 million yuan and 900 million yuan, were issued in May last year, a few months before it defaulted its offshore bonds, under a Beijing-led programme launched in August 2022.
Under the programme, China Bond Insurance Co, which provides financial guarantee services, provides unconditional and irrevocable joint liability guarantee for the notes. – Reuters
