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Bloomberg
Chinese conglomerate HNA Group faces rising bond maturities this year even if it’s able to navigate current difficulties in repaying debt to banks.
HNA is under mounting pressure as several banks are said to have frozen some unused credit lines to its units after missed payments. That follows a $40-billion-plus buying spree that saw the conglomerate emerge from obscurity to take large stakes in companies including Deutsche Bank AG and Hilton Worldwide Holdings Inc. in recent years.
The bill on maturing offshore and onshore notes for the group and its units will swell to more than $1.88 billion in both the third and fourth quarters, from 1 billion yuan this quarter, Bloomberg-compiled data show.
This debt wall is all the more problematic because the yields on some of its bonds have surged to about 20 percent, the highest since they were sold.
HNA officials couldn’t be immediately reached for comment. While concerns about the company’s ability to repay debt have mounted, Goldman Sachs said that HNA’s cash-generating assets will enable it to service bond payments. Six HNA units have suspended share trading this month.