© Reuters. FILE PHOTO: The company logo of Chinese developer Country Garden is pictured at the Shanghai Country Garden Center in Shanghai, China August 9, 2023. REUTERS/Aly Song/File Photo
BEIJING/HONG KONG (Reuters) -Country Garden has secured approval from its creditors to extend the maturity of one more onshore bond by three years, two sources with knowledge of the matter said, as the cash-strapped Chinese developer scrambles to avoid a default.
Country Garden’s onshore creditors voted on Monday for proposals by the distressed developer to extend repayments on eight onshore bonds worth 10.8 billion yuan ($1.48 billion) by three years.
Of those eight Country Garden bonds, maturity extensions for six have been approved, Reuters reported on Tuesday, citing sources. The decision on extending the maturity of the eight bond is not known yet.
The sources declined to be named as they were not authorised to speak to the media.
Country Garden did not immediately respond to Reuters request for comment.
Shares in Country Garden, China’s largest private property developer, jumped as much as 14% in Hong Kong on Wednesday.
Country Garden’s financial woes are the latest to hit China’s property sector, which was once a pillar of growth for the world’s second-largest economy but has become its biggest drag since 2021 in the wake of an unprecedented liquidity crisis.
Before the latest voting to extend the maturities of eight onshore bonds, Country Garden managed to avoid default at the last minute twice earlier this month, bringing some relief to the battered property sector.
Country Garden, one of the few large Chinese developers that have not defaulted on debt obligations, has been facing liquidity pressure with reduced available funds as sales plunged, its interim financial statements show.
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