Rongsheng Development (002146.SZ) proposes debt restructuring to resolve the principal amount of US dollar bonds worth about 3 billion yuan and corresponding interest

According to Zhitong Finance App, Rongsheng Development (002146.SZ) announced that Rongchangda Development (BVI) Limited (hereinafter referred to as the “issuer”), a wholly-owned subsidiary of the company, will issue two US dollar bonds (hereinafter collectively referred to as the “underlying bonds”) overseas in 2022 and listed them on the Singapore Exchange (SGX-ST). As of September 29, 2026, the outstanding principal balance of the underlying bonds was approximately US$845 million and unpaid interest payable was approximately US$89 million.

In order to optimize the debt structure of the company and overseas subsidiaries, ease the pressure on immediate payment of foreign debt, and resolve the risk of overseas debt, the company plans to issue offers to qualified holders of the underlying bonds using a pure exchange offer (Pure Exchange Offer) method outside of China to repurchase and cancel the underlying bonds that have been effectively bid on and accepted by the holders. This time, it is proposed to resolve the principal amount of US dollar bonds worth approximately RMB 3 billion and the corresponding interest of RMB 299.46 million.

This debt restructuring uses cash and overseas real estate project equity as consideration to repurchase and cancel overseas bonds. It does not use the company's immediate large cash payments as the main method. It can effectively relieve the pressure on immediate cash payment of the company's overseas debts, reduce the size of interest-bearing debt, optimize the debt structure, and help the company resolve debt risks, maintain normal operations, and promote sustainable and stable development.