Zhenro Properties fails to redeem $200 million perpetual capital securities

By Rebecca Melvin

Concord, N.H., March 16 – China’s Zhenro Properties Group Ltd. announced it did not redeem $200 million outstanding principal amount of its senior perpetual capital securities (ISIN: XS2013512608) as expected on March 5 and trading of the securities on the Hong Kong stock exchange will be suspended from Thursday, following a 10-day grace period, according to a notice.

The company announced on Jan. 4 that it planned to redeem the notes at par plus accrued interest.

Following its expected approval at an extraordinary resolution at a meeting at 10 a.m. ET on March 27, a revised proposed waiver will be become effective, to waive and forgive any default and a supplemental trust deed will be implemented, putting into place proposed amendments to the indenture of the notes. It is for this reason the company did not redeem the securities within the grace period, the company said.

The non-payment has not triggered any cross-defaults under the terms of the following notes:

• 8.35% senior notes due 2024 (XS2152219973/215221997);

• 9.15% senior notes due 2023 (XS2076026983/207602698);

• 8.3% Senior Notes due 2023 (XS2185842924/218584292);

• 7 7/8% senior notes due 2024 (XS2099413093/209941309);

• 7.1% senior notes due 2024 (XS2346158822/234615882));

• 7.35% senior notes due 2025 (XS2226898216/222689821);

• 6.63% senior notes due 2026 (XS2279711779/227971177);

• 6.7% senior notes due 2026 (XS2293750670/229375067);

• 5.95% senior notes due March 2022 (XS2308085112/230808511);

• 5.98% senior notes due April 2022 (XS2329241447/232924144);

• 7 1/8% senior notes due June 2022 (XS2358480155/235848015);

• 8.7% senior notes due August 2022 (XS2050860308/205086030); and

• 6½% senior notes due September 2022 (XS2383329237/238332923).

Zhenro is a Shanghai-based real estate developer.

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