GLP’s bonds slide by weekly record into distress
The sell-off nonetheless shows jitters among traders at a critical juncture for the company
Add BT as a preferred source
[SINGAPORE] Logistics operator GLP fell by records in credit markets this week after a report the firm disputed that China’s financial regulator informally guided insurers to limit transactions with its Chinese logistics and asset-management arm.
The Singapore-based company’s US$1 billion bond due in 2028 fell around 20 cents this week – its biggest weekly decline ever – to 75 cents on the US dollar. Two of its perpetual notes fell the most since 2022 to around 45 cents, putting them all at levels generally considered distressed.
That came after the report on Mar 17 from credit news provider Octus, which did not specify any reason for the regulator’s move. GLP said Wednesday (Mar 18) that it had not received any such notification from any regulatory authority. It said it had spoken directly with its key insurance investors who said they had not received such guidance.
The sell-off nonetheless shows jitters among traders at a critical juncture for GLP, as the company is said to be aiming for an initial public offering in Hong Kong as soon as the first half of this year. It also underscores the fragility of the market recovery for firms with exposure to China.
“It’s tough to build an IPO book when sentiment is this weak,” said Bloomberg Intelligence (BI) credit analyst Andrew Chan. “Without an IPO, GLP loses a critical liquidity option.”
The company’s chief financial officer held a call that lasted less than 10 minutes with investors Wednesday evening, saying that Chinese insurers remain actively engaged in both existing and future commitments, according to people familiar with the matter.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The firm plans to release year-end financial results for 2025 in early May and is currently in a blackout period, preventing it from disclosing financial details, the people said, citing the firm’s CFO.
“With 2025 results not yet out, nobody has a clear picture of their liquidity position – that uncertainty is weighing heavily,” BI’s Chan added.
In an emailed response to Bloomberg, GLP said that it has engaged with its investors to address market rumors, including via a group investor call held Wednesday night, and business is proceeding as usual, with no changes to the company’s operating approach or strategic priorities.
The National Financial Regulatory Administration did not reply to a request seeking comment.
GLP, which now sees data centres as a major growth engine, invests in logistics, digital infrastructure and renewable energy. The company generated US$1 billion in revenue in the first half of 2025 and cut total loans and borrowings by US$1.4 billion in the same period.
“We do not expect GLP to face liquidity distress over the near-term, but trading technicals are unfavourable due to tepid risk sentiment and dealers derisking on GLP positions,” said Zerlina Zeng, head of Asia strategy at CreditSights Singapore. Investors are likely also concerned about China’s fickle regulatory environment, she added.
The company listed in Singapore in 2010, raising S$3.9 billion, before agreeing in 2017 to a S$16 billion buyout – a record for Asia – by a Chinese consortium including private equity firms Hillhouse Investment, Hopu and now distressed developer China Vanke.
GLP came under tighter investor scrutiny in 2023, as creditors grew concerned about its debt-servicing capacity due to its relatively large exposure to China’s real estate market and issues around corporate governance.
Last year, the company sold GLP Capital Partners’ non-China operations for US$5.2 billion to Ares Management. It also secured a US$1.5 billion investment from Abu Dhabi Investment Authority in August.
Those steps, coupled with the timely repayment of maturing debt, have helped lift prices of some of its US dollar bond prices to around 96 cents, enabling the company to return to the primary market with new issuance.
GLP’s financing structure is complex, with relatively limited transparency in information disclosure, said Yao Yu, founder of Shenzhen-based credit rating startup RatingDog. Periods of news driven volatility are likely to continue, he added. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
