(Bloomberg) -- The newfound stability in Chinese dollar bonds will be tested this week as Kaisa Group, one of the market’s largest issuers, announces whether creditors agreed to swap $400 million of dollar notes in a move designed to avert default.
London-listed asset manager Ashmore Group bought almost $100 million of bonds issued by China Evergrande Group or its subsidiaries, bringing its holdings of the debt to more than $500 million at the end of September as other investors were heading for the exit. Evergrande plunged 8.8% in Hong Kong Monday, extending the biggest two-day drop in more than four months.
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Kaisa Is Next Worry for China Bond Traders After Rocky Month (5 a.m. HK)
The newfound stability in Chinese dollar bonds will be tested this week as one of the market’s largest issuers announces whether creditors agreed to a debt swap designed to avert default.
Kaisa Group Holdings Ltd.’s offer to exchange its $400 million of dollar notes maturing Dec. 7 for new ones due 18 months later expires at 4 p.m. in London on Thursday. If the offer -- which requires a 95% approval rate -- fails to win support, the struggling firm has said it may not be able to repay bonds and could consider a debt restructuring.
Ashmore Doubled Down on Evergrande as Others Fled for the Exits (10:13 p.m. HK)
China Evergrande buckling under its massive debt load and investors heading for the door looked like a buying opportunity for asset manager Ashmore Group.
From July to September, London-listed Ashmore bought almost another $100 million of bonds issued by Evergrande or its subsidiaries. The trades brought its holdings of the debt to more than $500 million at the end of September, according to data compiled by Bloomberg. The total level held by Ashmore may be even higher since 75% of its assets are held in segregated mandates, for which data may not be available.
Ronshine China Says Funds Remitted for Bond (6:07 p.m. HK)
Ronshine China said it has remitted $140 million into the designated bond-repayment account of Citicorp International for the payment of outstanding senior notes due Friday, according to a Hong Kong stock exchange filing.
The dollar bond has an outstanding amount of $136.6 million, plus $3.58 million in interest.
A look at Evergrande’s maturity schedule:
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