KAISA GROUP, Deep in Debt Crisis, Plans To Extend $400 Million Bonds for a Year and a Half

【Japan Himalaya League】 Author: Haixing  Translator: Ranting

On Nov. 24, Chinese Communist Party real estate developer Kaisa Group, which is mired in a debt crisis, recently planned to extend a $400 million bond due to mature for a year and a half, according to two people familiar with the matter.

CCP property developer Kaisa Group plans to propose a one-and-a-half-year extension of its $400 million U.S. dollar bonds due Dec. 7 at a 6.5 percent interest rate, financial information provider REDD said, citing two sources, according to Reuters. The proposal is expected to be sent to bondholders as early as this week.

Image from Reuters

The report said the debt extension may not include cash advances or additional credit enhancement measures. For example, collateral and personal guarantees provided by Yingcheng Guo, the controlling shareholder of Kaisa.

The report also noted that Kaisa’s offshore debt is second in size only to CCP’s Evergrande Group. It has yet to pay coupons on bonds due on Nov. 11 and 12 totaling more than $59 million. Both outstanding coupons have entered a 30-day grace period.

In addition, Kaisa is also heavily indebted in Communist China. Previously, the “Kaisa Finance” financial products guaranteed by the group failed to be paid as scheduled, leading many investors to go to its Shenzhen headquarters to defend their rights, and the scene was chaotic.

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Posted by: Ranting

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