China’s real estate industry may experience another thunderstorm! Agile saw its US dollar debt default for the first time, crashing more than 17%

The decline in China\’s real estate market continues. Apartment and villa builder Agile Group (03383-HK) defaulted on its US dollar debt for the first time. Today (14th), the price of its stock listed in Hong Kong collapsed by more than 10%, and once fell by more than 17%. It may set a record for the largest single-day decline in more than nine months.

The decline in China\’s real estate market continues. Agile Group (03383-HK), an apartment and villa builder, defaulted on its US dollar debt for the first time today (14th). The price of its stock listed in Hong Kong collapsed by more than 10%. It once fell by more than 17% and may hit a record of 9 The largest single-day drop in many months was recorded.
Agile issued an announcement on the Hong Kong Stock Exchange saying that in view of the liquidity pressure faced by the company, Agile has not paid the relevant interest on the 2020 note. The interest payment grace period for the note expired yesterday and it is expected to be unable to meet all payment obligations for its overseas debts.
Failure to pay relevant interest may result in the company\’s creditors requesting accelerated debt repayment. Currently, no relevant creditors have received any notice of accelerated repayment for the 2020 Notes.
Agile will maintain active communication with creditors and actively explore the best solutions to achieve long-term sustainable development and safeguard the interests of all stakeholders.
The relevant notes are the issuance on October 8, 2020 and November 10, 2020 of US$480 million of 6.05% senior notes due 2025.
Bloomberg Intelligence\’s report that Agile is another example of record defaults by Chinese real estate developers shows that China\’s housing market has a long road to recovery even as recent policy measures to support the real estate industry have triggered gains in builders\’ stocks and bonds.
Agile\’s default also represents the downfall of one of China\’s few remaining private builders.
There are fewer and fewer large private developers that have not been hit since Country Garden went into debt last year.
The announcement stated that Agile is considering all possible actions including but not limited to developing a comprehensive debt management solution for the group\’s overseas debts and will hire external financial advisors and legal advisors to assist in evaluating the group\’s capital structure and liquidity status to seek feasible overseas debt integrity. solution.
Agile attaches great importance to the interests of creditors and asks for time to assess the current challenges and formulate comprehensive and feasible solutions to protect the group\’s long-term future development and safeguard the interests of all the company\’s stakeholders.
Agile also said that it will continue to make every effort to advance project delivery in an orderly and practical manner to maintain the group\’s normal operations and will continue to take measures to speed up real estate pre-sales and accelerate the collection of sales proceeds to maximize its efforts to improve its asset and liability situation.
In the first four months of this year, the pre-sale amount of projects including joint ventures, associated companies and projects using the Agile brand was 6.55 billion yuan, a year-on-year decrease of 68% and 73.9% respectively compared with the 2023 grade and 2022. The corresponding construction area was 465,000 square meters, with an average per square meter The price per square foot is RMB 14,095.
According to the announcement of Agile, the total pre-sale amount of Agile and its subsidiaries, together with the group\’s joint ventures and associated companies, as well as real estate projects managed by the group and sold under the \”Ajule\” brand, last month was 1.19 billion yuan, corresponding to a construction area of ​​87,000 square meters and an average price The price is RMB 13,640 per square meter.
According to the China Enforcement Information Disclosure Network, there are currently 5 pieces of information about Agile being executed, with a total execution of 2.084 billion yuan. Among them, last Thursday (9th) Agile, Guangdong Xinmeiju Real Estate Development Co., Ltd., Tianjin Yayi Real Estate Development Co., Ltd., Guangxi Yashun Real Estate Development Co., Ltd. added a new execution subject information of RMB 812 million.
According to Agile\’s official website, as of 2023, Agile\’s total assets exceed 240 billion yuan, and its business covers more than 200 cities at home and abroad, with more than 100,000 employees. Last year\’s turnover was approximately 43.31 billion yuan, an annual decrease of 19.8%, a loss of 9.55 billion yuan, and a net loss of approximately 12.777 billion yuan. The loss further expand.

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