Country Garden shares tumbled to fresh eight-month lows Monday, extending losses on renewed debt fears for the Chinese property sector.
Future Publishing | Future Publishing | Getty Images
All of Country Garden‘s offshore debt could potentially be in default if the Chinese property developer fails to make a $15 million coupon payment on Tuesday, which marks the end of a 30-day grace period.
The embattled real estate giant warned last week it may not be able to make all its offshore repayments, including those issued in U.S. dollar notes.
Once China’s largest real estate developer, Country Garden narrowly avoided default in early September after it managed to pay $22.5 million in bond coupon payments. Its creditors voted to extend repayments on six onshore bonds by three years.
The founding family of Country Garden reportedly provided the company with an interest-free loan of $300 million, Reuters reported Friday, saying the family was trying to sell another jet to raise money.
If the Country Garden fails to make the repayment on Tuesday, it would become the latest casualty among many large Chinese real estate developers that have defaulted on their debt.
Chinese property giants including Evergrande and Country Garden have been hit by debt problems, hurting consumer confidence in the sector.
Shares of Country Garden rose 1.37% in early trade, tracking a 0.86% rise in the broader Hang Seng Index.
