Country Garden, China’s second‑largest homebuilder, has announced a major shift in its debt strategy. The developer will swap $1.14 billion of bank loans for new ownership rights, turning borrowed money into equity stakes in its projects. This move is part of a broader debt‑restructuring plan aimed at reducing liabilities and improving cash flow.
The conversion was a response to rising financial pressure and tightening credit conditions affecting the country’s real‑estate sector. By exchanging debt for equity, Country Garden plans to keep the projects on track while giving lenders a fresh claim on the company’s future profits. The deal also signals the developer’s intent to maintain stability for investors and homes built under its chain of projects.
Financial analysts say the shift could help the firm lower interest costs and improve its balance sheet. It also could set an example for other developers facing similar debt challenges, as Chinese authorities push for healthier finances across the property market.
The restructured loans will be converted into shares following a timetable agreed with lenders. Country Garden’s leadership highlighted the importance of collaboration with banks and a transparent process to protect all stakeholders. The announcement is expected to calm market concerns about the company’s repayment capacity and reinforce its commitment to completing ongoing construction projects.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
