Country Garden Holdings Default Triggers Payout on Default Insurance: Chinese Developer Faces Credit Event

2023-10-26 10:21:25

Chinese developer Country Garden Holdings suffered a default on Oct. 18, a derivatives panel said Thursday, paving the way for investors to receive a payout on default insurance.

“A default credit event occurred and the date of this default credit event was October 18,” said the Ex-Japan Asia Credit Derivatives Determination Committee (CDDC). ) in a press release published on its website.

“Payment default” is one of the credit event circumstances that can trigger payment on credit default swaps (CDS), derivative instruments used to insure against exposure losses. corporate debt or sovereign debt.

A grace period for paying a $15 million coupon on a Country Garden bond due September 2025 expired last Wednesday, with bondholders saying they have not received the money upon expiry of the period. (Reporting by Karin Strohecker in London and Akanksha Khushi; Writing by Jason Neely)

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