(Yicai Global) Nov. 10 -- R&F Properties has become China’s first property developer to succeed in extending repayment of all of its domestic and overseas bonds, totaling about USD6.4 billion.

R&F will lengthen the weighted-average life of eight domestic bonds to more than three years from four months, the company announced today. The balance of the bonds was about CNY13.5 billion (USD1.9 billion), according to China Lianhe Credit Rating.

In July, the Guangzhou-based developer had extended the maturity of all 10 of its US dollar bonds by three to four years and finished restructuring over USD4.9 billion of senior notes. It also gained approval to pay the interest on the notes in the next two years with physical assets.

The debt restructuring will greatly ease the pressure on R&F over the next three years against the backdrop of an unfavorable borrowing environment and tight liquidity for real estate developers, it said on Weibo.

Extending the time frame for repaying bonds does not mean R&F’s debts have vanished, however. The company had CNY126.2 billion (USD17.6 billion) of interest-bearing debt as of June 30, the developer said in a report at the end of September.

R&F’s cash flow began to improve in the second half of 2019. Since the end of that year, it has pared about CNY70.9 billion of interest-bearing debt by cutting spending and increasing income. 

R&F has also been reducing its liabilities by selling assets.Over the past two years, R&F earned more than CNY20 billion from asset sales, including logistics parks, office blocks, hotels, and property management companies, and used the proceeds to cut debt, the firm said. R&F has more than 200 projects worth around CNY220 billion for sale this year.

R&F will continue to improve its business operations by developing projects, enhancing sales, and advancing sales of non-core assets, it noted.

Editor: Martin Kadiev