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Wanda Planning to Set Up $12.4bn Fund to Help Pay Debt and Tax
December 3, 2024
Dalian Wanda Commercial Management Group plans to establish a fund of up to RMB 90bn ($12.4bn) along with two private firms and is looking at insurance companies as possible investors. The fund will be backed by at least 50 malls and fundraising is expected to be completed by 2025. It will help Wanda pay taxes and debt, particularly an RMB 10bn ($1.4bn) tax obligation arising out of the sale of its mall arm to a PAG-led consortium. A portion of the fund will also be used to repay its 2026 dollar bond, although maturity extension could be considered if the fund’s setting-up is delayed. Wanda also touched upon repaying other debts, including a dollar bond and a yuan note, using funds from sources other than the new fund. It recently proposed extending the maturity of a 2025 dollar bond and also reduced a syndicated loan. Wanda continues negotiations to sell more malls, having already disposed of or pledged over 10 properties this year. Wanda’s dollar bonds have risen sharply since late-November. For instance, its 11% 2026s have rallied from 76 cents to 85 cents on the dollar since November 20. Similarly, its 11% 2025s have risen from 85 cents to 94 cents on the dollar since then.
Separately, Shimao Group won a Hong Kong court decision to dismiss a liquidation petition by China Construction Bank (Asia) Corp., thus gaining more time to complete its $11.5bn debt restructuring. The court’s ruling follows indications of approval from some banks and bondholders for the plan. Shimao, had faced legal challenges from creditors who were upset by the lack of progress on debt restructuring. The developer plans to request a meeting on January 16 for a vote on the plan. The petition for liquidation was filed in April. Shimao’s deeply distressed dollar bonds were trading stable at 7 cents on the dollar.
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