Country Garden Misses Onshore Coupon Payments, Seeks Grace Period Extension from State-Owned Guarantor

According to recent developments, Chinese real estate giant Country Garden has announced that it is unable to meet the scheduled onshore coupon payments due on May 12th. However, the company intends to pay both the overdue interest and the original coupons by May 13th during the designated grace period. If Country Garden fails to make the payments by the end of the grace period, China Bond Insurance Co, a state-owned institution responsible for providing financial guarantees, will assume obligation for the credit enhancements. This news follows Country Garden’s previous defaults on its $11 billion worth of offshore bonds and delayed repayments on its onshore bonds, which occurred in late 2021. The two coupons, each amounting to approximately $9.1 million, were issued as part of a Beijing-led program established in August 2022, where China Bond Insurance Co offers unconditional and irrevocable joint liability guarantees for participating notes. (Source: Reuters)