Shares of China developer Radiance plunge after missed bond repayment

Radiance Holdings (Group)

21/03/2024 05:23

HONG KONG, March 21 (Reuters) - Shares of Radiance
Holdings  9993.HK  plunged as much as 14.3% on Thursday after
the Chinese property developer said it has missed the repayment
of a $300-million offshore bond due the previous day.
    Beijing-based Radiant becomes the latest property firm to
miss an offshore debt payment since a debt crisis engulfed the
industry in mid-2021, leading to many defaults, such as those of
China Evergrande Group  3333.HK  and Country Garden  2007.HK . 
    The price of Radiance shares dropped on Thursday to a record
low of HK$1.68 since its Hong Kong listing in 2020. 
    The dollar notes in question were bid at 41.75 cents on the
dollar, down from 90.676 cents in the previous session, data
from Duration Finance showed. 
    The company said in a filing on Wednesday the missed payment
would not have any potential material impact on business
operations, adding that it was seeking the "optimal solution" to
safeguard the interests of all stakeholders.    
    Its sales have faced extreme pressure from "profound
adjustments" in the property sector since the beginning of 2023,
it added.
    The 7.8% bond due on Wednesday was Radiance's only
outstanding dollar bond offshore. It has three onshore bonds
worth 2.8 billion yuan ($389 million) maturing in 2025 and 2026,
LSEG data shows. 
($1=7.1986 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Clarence Fernandez)
 ((clare.jim@thomsonreuters.com;))