R&F Properties succeeded in delaying payment on its $735mn 5.75% dollar bond due Thursday. The company said it was able to buy back only 16% ($116.4mn) of the note under a tender offer as it did not have sufficient liquidity to complete the tender. As part of the offer, bondholders agreed to extend repayment on the remaining principal by six months. R&F has RMB 6.6 billion ($1.04bn) of local bonds maturing in April and May and a $288mn dollar bond due July 2022. Overall, it has needs to repay or refinance about $3bn in bonds in 2022 excluding the 5.75% 2022s that is being repurchased and extended.
R&F’s dollar bonds continue to trade at distressed levels of 26-28 cents on the dollar
Separately, Shimao Group said it is set to repay a local bond maturing on Saturday after higher than expected cash flows from property sales in December 2021. Shanghai Shimao Co., its onshore subsidiary has set aside funds to repay the RMB 1.9bn ($300mn) 4.65% local bond. Shimao however has to repay or refinance ~$392.6mn in bond coupons and maturities in January. After being downgraded by Moody’s and S&P to B2 and B- on Monday, it was downgraded by Fitch yesterday to B-. Its dollar bonds are down over 1-2 points to trade at over 35 cents on the dollar.
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