China's Greenland Holdings defaults on $432 million dollar bond

China state-backed Greenland Holdings has defaulted on a dollar bond worth $432 million due to a missed amortisation payment, Debtwire reported on Wednesday, citing a notice from the trustee.

The default adds to the problems plaguing the Chinese property sector as more liquidity troubles have emerged in the past few weeks despite policy support.

Shanghai-based Greenland was the first state-backed developer to extend dollar bond payments last year after the property sector plunged into a debt crisis in mid-2021.

Notification to the holders

HSBC, a trustee for Greenland's 6.75 per cent bond due June 25, 2024, notified holders on July 14 of an event of default because the developer failed to pay the 5 per cent amortisation worth 22.5 million on the due day, and the failure continued for the next seven days, according to Debtwire.

Greenland did not respond to a request for comment.

Late last year, the developer extended the maturity of the June 2023 notes in question by one year and a series of other bonds by two years. It promised to pay 5 per cent of the principal on the original maturity dates, together with interest.