Struggling Chinese property developer Logan Group has RMB 5.3 billion ($839 million) of domestic debts coming due this month, reports Caixin. The developer’s liquidity crunch is indicative of the external financing situation, a fall in industry sales and the concentration of debt maturity.
Logan has 19 outstanding bonds with a total balance of RMB 20.6 billion, among which RMB 12.4 billion of bonds are due within one year, according to debt information platform DealingMatrix. The company also has RMB 4.05 billion of asset-based securities due September.
Capital market access is closed for most Chinese developers, including Logan. The company will have to rely on cash to repay the debts, while the company’s cash balance has decreased since the first half of last year, credit rating company Fitch said. Since last month, Standard & Poor’s, Fitch and Moody’s all downgraded Logan’s ratings several times.
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