Developer R&F Pleads for Six Month Delay in Repaying $725 Million of Bonds

Chinese developer Guangzhou R&F Properties Co. Ltd. is asking bondholders to consent to a six-month delay to the repayment deadline for $725 million in dollar bonds due in January, as it scrambles to avoid a default amid widespread liquidity pressure in the country’s troubled property sector.

R&F also proposed two bond buyback options, according to a Wednesday filing to the Singapore stock exchange, where the notes are listed. Under the first option, the developer offered investors $830, with accrued interest, for every $1,000 of the principal amount, equivalent to a 17% discount. Under the second option, it would pay 50% of the principal on the due date, with interest, and the deadline of the remaining 50% would be delayed.