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Kaisa says Bondholders Haven’t Sought Accelerated Payments Yet

Chinese property developer said it also did not pay a coupon totalling $105 million for notes due in 2023, 2025, and 2026, with the grace period for the first two already expired

A sign of the Kaisa Plaza, a real estate property developed by Kaisa Group Holdings, is seen near an apartment building in Beijing, China December 1, 2021. REUTERS/Tingshu Wang


Kaisa Group said on Monday it has not received any notice from bondholders to accelerate repayments yet as the embattled Chinese property developer has not repaid a $400 million offshore bond.

The firm said it also did not pay the coupon totalling $105 million for notes due in 2023, 2025, and 2026, with the grace period for the first two already expired.

The non-payment on the $400 million maturity on December 7 triggered cross-default provision on all its $12 billion offshore bonds and prompted a downgrade to “restricted default” by Fitch Ratings.

Kaisa is the second-largest dollar bond issuer among China’s property developers after China Evergrande Group, which has more than $300 billion in liabilities.

The fate of Kaisa, Evergrande and other indebted Chinese property companies has gripped financial markets in recent months amid fears of knock-on effects, with Beijing repeatedly seeking to reassure investors.


Kaisa Shares Tumble

Shares of Kaisa tumbled 8.7% to HK$0.84 in the early session on resumed trading, a record low, after a suspension since December 8.

Kaisa said it was still in talks with bondholders over a debt restructuring deal and it had hired Houlihan Lokey as its financial adviser and Sidley Austin as a legal adviser.

Kaisa was in talks with Lazard, the adviser of a group of offshore bondholders, to sign a non-disclosure agreement (NDA), as has been reported, laying the groundwork for further discussions on forbearance and financing solutions.

The group planned to use up to $1 billion in order to buy bad loans from the Chinese developer’s onshore creditors, sources said last week.

In the Monday filing, the developer added after significant decline in sales in October and November, it expects the confidence of potential property purchasers to remain subdued in December.


  • Reuters with additional editing by Jim Pollard





Offshore Kaisa Bondholders Seen Buying Its China Bad Loans


China Evergrande and Kaisa Declared in Default by Fitch


China Evergrande Shares Hit New Low as Kaisa Misses Payment





Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.


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