Evergrande debt revamp plan fails to cheer investors, property stocks fall

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China property stocks fall after Evergrande debt revamp plan

The Evergrande Center of China Evergrande Group is seen in Shanghai, China September 24, 2021. REUTERS/Aly Songdebt restructuring proposal, a test of investor sentiment towards the battered property sector, failed to impress because of its long repayment period and lack of enough sweeteners, creditors and analysts said.debt restructuringThe developer has $22.7 billion of offshore debt, all of which is deemed to be in default.

Creditors can either swap all of their holdings into new notes with maturities of 10 to 12 years, or convert them into different combinations of new notes with tenors of five to nine years and equity-linked instruments. The outcome of Evergrande's debt revamp plan is likely to have a bearing on similar proposals being worked on by a string of other Chinese developers that have defaulted on repayment obligations in the last year.

The move also comes amid Beijing's efforts to stabilise its liquidity-crisis hit property sector, which account for roughly a quarter of its economic output, as part of its efforts to bolster growth.

 

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China property stocks fall after Evergrande debt revamp planChina Evergrande Group's long-awaited offshore debt restructuring proposals failed to address investor concerns about the property sector's prospects, sending shares of rival developers lower on Thursday.
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