Chinese construction firm Shimao announced on Monday that it has defaulted on bonds worth the equivalent of one billion dollars (958 million euros) and other bonds issued overseas.
In a filing filed with the Hong Kong Stock Exchange, where it is traded, the company said it had failed to pay almost US$1,204 million (€1,154 million), including interest, on securities listed on the Singapore Stock Exchange with a fixed annual income. interest rate 4.75%.
Shimao assured that there have been no complaints so far and vowed to “strive to continue actively cooperating” with creditors in an effort to reach a solution that satisfies both parties.
In the same statement, the construction company indicated that it “failed to meet principal payments on certain other offshore debts” in addition to the above obligation, although it did not provide details. The company said it was in talks with creditors for a “global settlement.”
Between January and May, real estate sales fell 72% year-on-year to 34.26 billion yuan (4.91 billion euros), the company attributed the decline to “significant changes in the macroeconomic environment for the real estate sector in China starting in the second half of 2021 , as well as the influence [surtos de] COVID-19″.
This forced the company to sell assets, “improve” the group’s liquidity, or renegotiate the terms of some of its funding lines, which did not prevent its position from being compromised “due to market uncertainty due to debt refinancing.” , as well as difficult operating and financing conditions.”
Last year, Chinese regulators began requiring construction companies a 70 percent liability-to-asset ceiling and a 100 percent net debt-to-equity cap, sparking a liquidity crunch in the sector exacerbated by the fight against the coronavirus. 19.
Last May, Sunac became the latest Chinese construction company to default. The most telling case concerns the Evergrande Group, whose liabilities amount to the equivalent of $300 billion (€287,691 million).
Last month, financial ratings agency S&P also downgraded the debt rating of the Greenland group, which is owned by the Shanghai municipality, due to rising “risks” of default.
Greenland is one of the largest Chinese real estate companies with a strong international presence, especially in the US.
The group recently requested a one-year deferral of $488 million (€453 million) in interest payments on debt securities, Bloomberg reported.
Author: Lusa
Source: CM Jornal
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
