Guangzhou R&F proposes multi-faceted domestic bond restructuring plan

Guangzhou R&F Properties Co., Ltd. has announced a restructuring plan for its domestic corporate bonds, including several options for bondholders. The company proposes a cash repurchase of up to 600m yuan, offering a 20% discount on the remaining face value across three installments. Additionally, bondholders can opt for debt settlement with physical assets, where 30 yuan worth of assets will settle every 100 yuan of bonds, with a total principal cap of 6.6bn yuan.

Further options include debt offsetting using accounts receivable trust units (up to 1bn yuan in principal, with 30 yuan worth of units per 100 yuan of bonds) and asset trust units (up to 5.7bn yuan in principal, with 35 yuan worth of units per 100 yuan of bonds). The company also plans to issue up to 200m shares in Hong Kong, China, into a special purpose trust to provide payment via equity economic income rights.

For remaining principal after these options, a full debt retention and long-term extension until September 16, 2035, is proposed. Principal payments of 1 yuan per bond will commence semi-annually from March 16, 2031, with a uniform interest rate reduction to 1% for both past and extended periods. This preliminary plan, subject to bondholder approval, seeks to reduce debt, optimize structure, and improve the company's financial health.