China’s Country Garden repays onshore coupons within grace period

By Thomson Reuters May 11, 2024 | 4:46 AM

BEIJING (Reuters) – Embattled Chinese property developer Country Garden said in a statement on Saturday it had repaid two onshore bond coupons before the expiry of a five-day grace period, following missed payments last week.

Country Garden, which defaulted on $11 billion of offshore bonds and extended other onshore bond repayments late last year, said on Thursday it aimed to make the payment and additional interest incurred by Monday.

It said state-owned China Bond Insurance Co would do so on its behalf if it missed the deadline.

The coupons totalling 65.95 million yuan ($9.1 million) are tied to two medium-term notes guaranteed by China Bond Insurance Co and issued in May last year, a few months before Country Garden defaulted on its offshore bonds.

They have an outstanding 800 million yuan and 900 million yuan, respectively.

(Reporting by Joe Cash; Editing by William Mallard and Clarence Fernandez)