Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Kaisa Offers Bond Exchange on Cash Woes, Stock to Resume Trading

Stock MarketsNov 24, 2021 09:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Kaisa Offers Bond Exchange on Cash Woes, Stock to Resume Trading

(Bloomberg) -- Chinese developer Kaisa Group Holdings Ltd. began an exchange offer for at least $380 million of bonds to avert a default during the nation’s real estate cash crunch. 

The builder has offered to exchange at least 95% of its $400 million 6.5% note maturing Dec. 7 for new notes with the same coupon maturing June 2023. If the offer to bondholders fails, the developer may not be able to repay bonds and could consider a debt restructuring, it said in a stock exchange filing on Thursday. 

Kaisa is the latest real estate firm trying to shore up its finances as a debt crisis originally centered on China Evergrande Group engulfs the industry. The liquidity crunch follows a government campaign to reduce leverage in the sector, and has been made worse by a slump in home sales and prices. 

See details on the bond exchange offer here 

“Despite our efforts to reduce our interest-bearing debt in response to government regulations, the current sharp downturn in the financing environment has limited our funding sources to address the upcoming maturities,” Kaisa said in the statement. 

Kaisa is one of China’s largest issuers of high-yield dollar bonds, with more than $11 billion of notes outstanding. Its 2021 bond is indicated at 50.6 cents on the dollar, Bloomberg-compiled prices show. Kaisa has another $2.8 billion in dollar bonds coming due next year, including a $550 million note in April.

The statement came hours after Kaisa announced plans to resume trading of its stock on Thursday, repay overdue wealth management products and speed up the disposal of real estate projects and “high-quality assets.” 

Kaisa’s Hong Kong-listed shares were halted on Nov. 5 pending an announcement containing inside information. The company has put 18 projects in Shenzhen up for sale, with a total value estimated at 81.8 billion yuan ($12.8 billion), Bloomberg reported at the time. 

A set of Kaisa Group Holdings offshore bondholders has hired advisers, according to people with knowledge of the situation. Like Evergrande, Kaisa is contending with individuals demanding repayments of overdue wealth management products. The company has guaranteed such products, which have 12.8 billion yuan outstanding in principal and interest, local media reported earlier this month. 

About 1.5 billion yuan in wealth products tied to the Kaisa group and its associates became due in October and November, the company said in the statement Wednesday. Kaisa is implementing measures to pay back about 1.1 billion yuan of the wealth products, it said. These include paying 10% of the principal on the month that they come due, and a further 10% every three months thereafter.  

©2021 Bloomberg L.P.

Kaisa Offers Bond Exchange on Cash Woes, Stock to Resume Trading

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email