Chinese developer Country Garden defaulted on bonds – Kommersant

According to the agency Bloomberg, one of the largest Chinese developers, Country Garden Holdings Co. made the first default on its dollar bonds. The agency refers to the message of the trustee for this issue of bonds of Citicorp International Ltd (part of Citigroup).

The Chinese company failed to pay interest before the end of the grace period, which ended last week, “constituting an event of default.” In such a case, the trustee may demand immediate payment of the entire loan amount and interest if the holders of at least 25% of the loan so desire. According to Bloomberg, “there is no indication yet that lenders have made such a request.”

Country Garden has been in difficult financial straits for several months. Its total debt is $187 billion, and in the first half of the year the loss reached $7 billion. At the end of August, the company for the first time announced, which “may be unable to service its financial obligations on a number of borrowings, which would constitute a default.” At the beginning of October Country Garden again notifiedwhich may fail to pay debts on issued bonds on time or during grace periods, which will automatically lead to default on them.

So far, neither Country Garden nor Citigroup have commented on reports of the Chinese company’s default.

The Chinese economy grew above expectations – by material “Kommersant”.

Evgeny Khvostik