Another high-profile state-owned company has defaulted on $2 billion of its debt

Citic Guoan Group defaulted again on December 15, with a size of 2 billion yuan. The group defaulted on 3 billion yuan of bonds on Oct 13, while citic Guoan defaulted on at least seven bonds totaling more than 17 billion yuan in 2019.

Citic Guoan defaulted on a five-year corporate bond, which was issued and listed in December 2015 and matured on December 15 this year. The coupon was 4.23 percent and the principal and interest payable amounted to 2.084 billion yuan (RMB, the same below).

In addition, the group in huaxia bank Beijing branch 399 million RMB working capital loans also is about to expire, according to the announcement on December 15, citic guoan, the board of directors has agreed to apply for an extension on January 19, 2022 and the group held by the two companies shares as collateral, respectively: a 14.84% stake in anhui radio and television information network, as well as a 24.5% stake in henan cable television network.

Citic Guoan’s main businesses are information and services, real estate development and property management. According to public information, the former major shareholder of Citic Guoan is a state-owned enterprise of the Communist Party of China — China Citic Group Co., LTD., which introduced five private enterprises after the “mixed reform” in 2013 and 2014. However, the actual controller behind these private enterprises is Still Citic Guoan.

Citic Guoan takes Citic Group as its backer for financing and acquisition.

In recent days, there has been a spate of bond defaults by state-owned enterprises in the Chinese mainland, including Tsinghua Unigroup, Peking University Founder Group, Brilliance Auto, Shengjing Energy and Yongcheng Coal power.