Chinese real estate developer Gemdale has managed to avoid defaulting on a major onshore bond, Caixin learned, but remains deep in debt as it ramps up efforts to offload assets and secure new sources of credit, reports Caixin. Gemdale has transferred funds to an escrow account to cover repayments on a RMB 2 billion ($278 million) bond, people familiar with the matter told Caixin, after investors exercised an option to get their money back two years earlier than the maturity date of March 2026.
Gemdale, one of a handful of Chinese developers to avoid a default so far, also repaid a medium-term onshore note due in January on time, Caixin learned.
The Shenzhen-headquartered firm is feeling the financial pinch as more than RMB 13 billion of its public debt obligations are set to mature in the first half of the year, including RMB 6.1 billion this month alone, according to data provider Dealing Matrix.