Zhenro Bonds Drop as It Seeks to Extend Debt: Evergrande Update
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Zhenro Properties Group Ltd.’s dollar bonds continued to fall on Tuesday as the property developer’s plan to extend maturities on about $1 billion of debt raised investor concerns about its financial health.
The firm announced an exchange offer for its offshore and onshore notes due 2022, saying in an exchange filing late Monday that it may not have enough capital to meet its obligations. Worries about Zhenro may hamper Beijing’s efforts to stem financial contagion in the industry and further drive up financing costs for developers that need to repay almost $100 billion of debt this year.