Chinese developer Yango Group has defaulted on a 600 million yuan ($94.62 million) onshore bond after it failed to meet a payment due on Tuesday, the bond’s underwriter said.
China Construction Bank, the underwriter, said in a statement late on Wednesday Yango did not pay the principal and interest in full on the due date.
Yango defaulted on two dollar bonds in February, triggering demand for early repayments from some investors of its onshore bonds.
The onshore bond payment in question was originally due in June.
Yango shares rose more than 10% in Thursday morning trading in Shenzhen.
In November 2021, Yango reached an agreement with investors to extend the payment of its onshore bond due November 19, two sources familiar with the matter told Reuters.
Repayment of Yango’s 7.8% November 2021 bond, with an outstanding value of 636.5 million yuan was extended by one year, the sources said.
Extension of Principal Payments
The agreement follows a deal reached to extend principal payments on onshore asset-backed securities redeemable in November.
Fujian province-based Yango Group had been in talks with investors to discuss the extension of payments on yuan-denominated asset-backed securities that holders can redeem.
On Wednesday, property developer Sunac China told some onshore holders it did not rule out an extension proposal for a 4 billion yuan (US$630.38 million) puttable bond due April 1, financial intelligence provider REDD reported.
The country’s No.3 property developer by sales previously said it had prepared sufficient funding to repurchase the bond.
The firm also planned to initiate talks with holders of its private offshore debt worth US$1 billion, REDD reported.
Sunac flagged its financial difficulties to the People’s Bank of China over the weekend, according to the report.
The developer did not immediately respond to a Reuters request for comment.
- Reuters, with additional editing by George Russel