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Shanghai Developer Missing Bond Coupon Flags Property Debt Risks

  • Glorious Property misses $26.5 million interest on 2018 notes
  • Debt for listed builders rose 21% to record 3 trillion yuan

A Shanghai-based developer missed a deadline to pay interest on an international bond, reinforcing concern that builders have been too aggressive in chasing China’s property boom.

Glorious Property Holdings Ltd. didn’t pay $26.5 million of semi-annual interest due Monday on its 13.25 percent notes that mature in 2018. The builder, controlled by tycoon Zhang Zhi Rong, said it will honor the coupon within a 30 day grace period. That’s the second time this year the developer missed a deadline on the notes. It failed to meet a March 4 interest payment before honoring it later that month within a grace period, according to the data.