The logo of real estate development company Shimao Group on the facade of Shimao International Plaza in Shanghai, China, January 13, 2022.Reuters/Aly Song/File photo Obtaining license rights
HONG KONG, Dec 8 (Reuters) – Shares in Chinese property developer Shimao Group (0813.HK) were flat on Friday after the company announced a restructuring plan to cut offshore debt by up to $7 billion, the latest in China’s Became a real estate development company. repay the debt.
The developer, which has about $11.7 billion in offshore bonds, bonds and other lines of credit, has been pursuing a debt repayment plan over the past several months, Simao said in the article. filing on the Hong Kong Stock Exchange late Thursday.
The company said it proposed to a group of major creditors to exchange some of its debt for new loans with maturities of up to nine years, new senior secured debt and equity-related products.
Simao plans to reduce debt by approximately $6 billion to $7 billion “to strengthen the group’s financial strength and business operations,” the filing said.
After the filing, Simao shares were trading flat on Friday morning, while the Hong Kong Composite Index (.HSMPI), which tracks Chinese developers, was down 1.7%.
A final agreement with creditors regarding the offshore restructuring has not yet been entered into, according to the filing.
Chinese developers continue to struggle with declining property sales, while investors remain concerned about the spillover into China’s broader financial system and the negative impact on economic growth prospects. China’s real estate sector accounts for about a quarter of the world’s second-largest economy.
Shimao, the first major Chinese developer to begin formal negotiations with creditors over restructuring terms, originally proposed a plan to repay its offshore debt over a period of three to eight years last August.
The Shanghai-based developer, which defaulted on its first offshore payment in July last year, is seeking to sell a hotel it has owned in Hong Kong since March for at least $828 million as part of a debt recovery plan. .
Report by Xie Yu.Editing: Tom Hogue
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