(Bloomberg) -- Bond and trust obligations will again be in the spotlight for China's troubled property sector this month, after further signals of investor concern about builders' repayment capabilities.
Stressed developers face at least $3.1 billion of payments on dollar and onshore public bonds, according to data compiled by Bloomberg, a pullback from the previous month's level. In addition, the sector has 53.6 billion yuan ($8.45 billion) of trust payments due in April, according to data tracker Use Trust.
Builders dominate China's high-yield dollar note market, which lost a record 19% in the first quarter on top of the prior quarter's 15% loss, according to a Bloomberg total return index. All of China's offshore bond defaults this year have come from the nation's property sector, and the rate of such payment misses is again set for an all-time high.
As concerns about balance-sheet transparency persist and new-home sales continue to slump, a number of embattled developers have yet to release audited results for last year. Some, including Sunac China Holdings Inc., said they couldn't even disclose unaudited figures.
Below is a week-by-week calendar of interest and principal payments due on local and offshore notes, as well as bonds which are puttable this month, for developers with the worst 2022 total returns as of March 30 in the Bloomberg high-yield index. Figures are according to Bloomberg-compiled data and exclude companies with at least one public bond default since the start of last year.
Week 1 (April 1-8) - $1.05 billion
- Sunac Real Estate 4 billion yuan note due 2024 is puttable April 1 and first deadline for 191.2 million yuan coupon (extension proposed and firm says coupon wired)
- Sunac Real Estate 140 million yuan coupon on note due 2025, first deadline April 2 (extension effort ongoing)
- Redsun $13.1 million coupon on note due October, first deadline April 3
- Guangzhou R&F 1.95 billion yuan note due April 7, plus 130.65 million yuan in interest (extension proposed)
- Guangzhou R&F 66.5 million yuan coupon on note due 2023, first deadline April 7
- Helenbergh $14.85 million coupon on note due 2023, first deadline April 8
Week 2 (April 9-15) - $979 million
- China SCE $18.4 million coupon on note due 2024, first deadline April 9
- Agile unit Guangzhou Panyu 1.45 billion yuan note due 2024 is puttable April 9 and first deadline for 85.55 million yuan coupon
- Redsun $401.8 million note due April 11, plus $20 million in interest
- Sunac China $29.5 million coupon on note due 2023, first deadline April 11
- Powerlong $190 million note due April 13, plus $3.68 million in interest
- Redco $12 million note due April 13, plus $481,200 in interest (remainder of note was exchanged or repurchased)
- Zhenro $21.75 million note due April 13, plus $643,000 in interest (remainder of note was exchanged)
- Agile Group $14.6 million coupon on note due 2025, first deadline April 13
- KWG 81.25 million yuan coupon on note due 2023, first deadline April 14
- Zhenro $11.4 million coupon on note due 2024, first deadline April 14
Week 3 (April 16-22) - $516 million
- Shenzhen Logan 1.5 billion yuan note due 2024 is puttable April 16 and first deadline for 70.35 million yuan coupon
- Shanghai Powerlong 97.5 million yuan coupon on note due 2026, first deadline April 16
- Sunac China $26.85 million coupon on note due 2023, first deadline April 19
- China SCE $18.1 million coupon on note due 2023, first deadline April 19
- Logan Group $7.88 million coupon on note due 2025, first deadline April 19
- Times China $166.8 million note due April 20, plus $4.37 million in interest
- Sunac China $20.4 million coupon on note due 2024, first deadline April 20
- Agile Group $8.64 million coupon on note due 2025, first deadline April 21
Week 4 (April 23-30) - $519 million
- Guangzhou R&F 1 billion yuan note due 2024 is puttable April 23 and first deadline for 63 million yuan coupon
- Ronshine $30.1 million coupon on note due October, first deadline April 25
- Times China $175.4 million note due April 26, plus $5.04 million in interest
- Shanghai Shimao 500 million yuan note due 2023 is puttable April 26 and first deadline for 18.5 million yuan coupon
- Jingrui $15 million coupon on note due 2023, first deadline April 26
- Sunac China $28 million coupon on note due 2024, first deadline April 26
- Powerlong $15.9 million coupon on note due 2025, first deadline April 30
| Firms | Stated reasons for delay in audited results | Auditor |
|---|---|---|
| Sinic | Recent departure of key employees | Baker Tilly |
| Ronshine China, Ronshine Service | Auditor change, impact from Covid-19 on auditing process | Changed from PwC to Elite Partners |
| Shimao Group, Shimao Services | Covid impact, delay in obtaining confirmations from third parties for audit | Changed from PwC to Zhonghui Anda |
| Sunac China | Covid impact on auditing process | PwC |
| China Evergrande | “Drastic changes” in operating environment, Covid impact (property-management and automobile units also delaying releases as a result) | PwC |
| Kaisa Group | Covid-caused lockdowns in Shenzhen | Grant Thornton |
| Greenland Hong Kong | Covid impact on auditing process | Deloitte |
| Powerlong, Powerlong Commercial Management | Auditor change, Covid impact | Changed from PwC to Elite Partners |
| Sansheng | Covid impact, delays in confirmation process with banks | KPMG |
| Sunshine 100 | Covid impact, personnel change, China's downward real-estate trend | KPMG |
| China Aoyuan | Covid impact, more time needed to assess potential impairments | Changed from Deloitte to Shinewing |
| Guangzhou R&F | Covid outbreak in Hong Kong | PwC |
| Modern Land | Covid impact, liquidity issues | KPMG |
| Dexin China, Dexin Services | Covid impact, delays in work with third parties | PwC |
| Agile, A-Living | Covid impact | PwC |
| Logan Group | Covid outbreak in Shenzhen and Hong Kong | Ernst & Young |
| Fantasia, Colour Life | Restructuring, loss of financial personnel, Covid impact | Deloitte |
| KWG Group | Covid impact | Ernst & Young |
©2022 Bloomberg L.P.
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