Country Garden wins approval to extend another onshore bond

HONG KONG (Reuters) – Embattled Chinese developer Country Garden has won approval from creditors to extend repayment on another onshore bond, the last in the batch of eight bonds it has been seeking extensions for, two sources familiar with the matter said.

The 492 million yuan ($67 million) onshore bond was issued by a subsidiary of Country Garden, and the company had delayed voting on this bond three times before creditors on Monday voted in favor to extend the maturity, the sources said.

The maturity of the bond has been extended by three years, said the sources, who declined to be named as they were not authorised to speak with the media.

Under the terms of the agreement, the issuer, Guangdong Giant Leap Construction Co would provide no less than 200 million yuan as a pledged guarantee for the bond, the two sources added.

Country Garden, whose financial woes have hit the Chinese property sector outlook, earlier proposed to extend maturities of eight onshore bonds worth 10.8 billion yuan by three years. Creditor approved the plans for seven bonds last week.

Country Garden did not immediately respond to Reuters request for comment.

($1 = 7.2946 renminbi)