China’s Country Garden misses bond payments as turmoil grips property sector
Real estate crisis continues to drag on world’s second-largest economy
Country Garden, China’s biggest private developer by sales, has missed interest payments on two international bonds as it battles to stave off a liquidity crisis that has derailed the country’s real estate sector and dragged on economic growth.
The $500mn bonds, which are due in February 2026 and August 2030, and were already trading at distressed levels, fell to 13 and 11 cents on the dollar respectively on reports of $22.5mn in missed coupon payments.
Country Garden, which had almost $200bn in liabilities as of the end of 2022, was one of a handful of private companies to survive a liquidity crunch that has ravaged the country’s real estate sector since the default of Evergrande almost two years ago.