China Coal Firm Makes Bond Payment It Missed as Market ImprovesBloomberg News
Sichuan Coal Industry repays notes it defaulted on in June
No Chinese company has defaulted on bonds so far this month
A Chinese coal company made a full bond payment it missed in June, in another sign that conditions are improving in the onshore note market this month.
Sichuan Coal Industry Group LLC, based in the southwestern province of Sichuan, said it transferred all the money to a custodian agency Wednesday, according to a statement on Chinamoney website. The funds include 1.057 billion yuan ($159 million) for principal and interest and 9.325 million yuan for a penalty fee, the statement said.
Chinese companies’ bond defaults have declined amid signs that local governments are helping prevent nonpayments to avoid regional financial risks. Demand for high-yield securities is rising as no firm has reneged on debt obligations this month for publicly issued notes, compared with one in June and five in May.
The statement said the company raised money through “multiple channels” after “many difficulties,” but it didn’t specify where the funds are from.
— With assistance by Judy Chen