HONG China Evergrande GroupEvergrande Group is about to unveil a restructuring proposal for its $22.7 billion offshore debt that could set the stage for distressed peers and shape investor sentiment towards the country's embattled property sector.
Two people with knowledge of the proposal said that it would give creditors a basket of options to swap their debt into new bonds with extended maturity and equity in Evergrande's two Hong Kong-listed units - Evergrande Property Services Group and Evergrande New Energy Vehicle Group.
The people said the details are not public and that the bonds will carry several tenors and coupons. One of them said the longest would be 8 years with a 9 per cent coupon.
Evergrande, once China's top-selling developer, declined to make a statement.
With more than $300 billion in debt in total, Evergrande has been at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks.
Evergrande, which began one of China's biggest debt restructuring processes early last year, said on Monday that a key bondholder group had agreed to its proposed terms and plans to publish the details on Wednesday.
The advisers of the group of bondholders are Kirkland Ellis and Sidley Austin and Houlihan Lokey.