By P.R. Venkat
Chinese property developer Country Garden Holdings plans to issue convertible bonds and warrants in an effort to pare down its debt by more than $11.0 billion.
As part of its restructuring plan, Country Garden said it seeks to issue mandatory convertible bonds worth $13 billion to its debt holders, it said Friday.
Country Garden will also issue warrants worth over $100 million to creditors.
Country Garden, once one of China’s largest developers, has faced severe financial difficulties due to a prolonged slump in the Chinese property sector, driven by a decline in consumer confidence and a subsequent drop in home demand.
The Chinese real-estate industry has seen dozens of developers collapse in recent years, including China Evergrande Group, which was once China’s largest developer by sales. Evergrande Group was ordered to liquidate by a Hong Kong court in 2024.
Country Garden said the proposed issuance of convertible bonds and warrants is subject to shareholder approval.
The developer said that if creditors elect to approve the proposals, it would help the group achieve “a more sustainable capital structure, allowing it to focus on delivering housing units and continuing its business operations.”
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
11-13-25 2132ET
Comments are closed.