Asian developers face Local squeeze

摘要

Two Asian property developers are set to default on their international bonds after failing to refinance onshore debts, showing that local lenders are becoming more selective even in the traditionally popular real estate sector. China's TAHOE CROUP failed to repay the principal on Rmbl.5bn (US$215m) 7.5% bonds that matured on July 5. Two days later, Indonesia's MODERNLAND REALTY did not redeem a Rp150bn (US$10.4m) 12.5% bond and scheduled a meeting with bondholders on July 14 to discuss options including extending the maturity date. Both have struggled to raise funding onshore, even though China has eased credit conditions and Indonesia has cut its policy rate by 75bp this year.