Chinese property firm Wanda seeks to delay payment on US$400 million bond

[BEIJING] Dalian Wanda Group’s commercial real estate unit is seeking a two-year extension on a US$400 million bond, the latest developer to seek a debt payment delay as China’s property crisis weighs on liquidity.

Dalian Wanda Commercial Management Group said in a statement that it is seeking noteholders’ approval to extend the maturity date of the 11 per cent dollar notes to Feb 13, 2028. The company proposed redeeming the bonds in installments while keeping the interest rate steady. 

The firm, which has previously delayed payments on dollar securities, had been working with advisers to sound out investor interest for potential options to deal with the US$700 million it owes across two bonds. 

China’s property woes have been flaring up recently, highlighting persistent problems in the sector. China Vanke has rattled markets with proposals to delay payments on two local notes, adding pressure to the industry and potentially exacerbating refinancing challenges for other developers. 

The country’s junk dollar bond prices have slid to their lowest level in more than a year and a half, as renewed worries about the sector have rippled through the offshore debt market. 

In 2023, Wanda proposed repaying a dollar bond in installments and later managed to push back the maturity of a portion of a separate note by one year to January 2026. 

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Wanda faces US$700 million of bond deadlines as China woes flare

Last year, Wanda agreed to cede control of the company’s shopping mall management arm in a US$8.5 billion deal. BLOOMBERG