Chinese Estates to book $174 mln loss from sale of all its Kaisa bonds

Chinese Estates Holdings

29/10/2021 03:11

Oct 29 (Reuters) - Chinese Estates Holdings Ltd  0127.HK 
said it would book an aggregate loss of HK$1.36 billion ($174.2
million) in the current fiscal year from sale of all its bonds
issued by peer Kaisa Group Holdings Ltd  1638.HK .
    The Hong Kong-based property developer and investor sold an
aggregate amount of $255 million worth of bonds issued by Kaisa
for $88.32 million including accrued interest from Oct. 19
through 28 over the counter, it said in a filing to the Hong
Kong bourse late on Thursday.
    In its latest sale, Chinese Estates sold an aggregate amount
of $100 million in bonds issued by Kaisa for $31.11 million
including accrued interest between Oct. 26 and 28 over the
counter.
    The notes included 9.375% Senior Notes due 2024 with a $10
million principal, 10.875% Senior Perpetual Capital Securities
with a $23 million principal and 11.7% Senior Notes due 2025
with a $67 million principal.
    Chinese Estates said it will use the proceeds for general
working capital and reinvestment.
    The developer has already said it would book a loss in its
current fiscal year from the sale of some bonds issued by Kaisa.
 urn:newsml:reuters.com:*:nL1N2RM014  urn:newsml:reuters.com:*:nL4N2RH0HU 
    Chinese Estates, a former major shareholder of indebted
developer China Evergrande Group  3333.HK , previously said it
had significant investment in Kaisa, whose shares have fallen
over the past few months due to wider liquidity concerns about
China's real estate sector. 
    Being Hong Kong-focused, Chinese Estates' stock has been
relatively steady versus peers who also have a focus on property
leasing overseas.

($1 = 7.7776 Hong Kong dollars)

 (Reporting by Donny Kwok; Editing by Christopher Cushing)
 ((donny.kwok@thomsonreuters.com; +852 3462 7745;))