OCBC sues China developer Shimao: Report

OCBC branch in SingaporeOCBC branch in Singapore. Photo taken pre-Covid.

This item originally appeared on finews.asia.

Chinese property troubles persist and have now affected Singaporean lender OCBC, which has filed a legal claim against developer Shimao regarding repayment for a revolving credit facility, according to a media report.

OCBC sued Shimao Group Holdings and a unit with regards to repayment for a revolving credit facility, according to a Bloomberg report citing a Hong Kong court filing last week by the Singaporean lender.

Principal of US$49.2 million had yet to be repaid by March 2 after OCBC demanded payment of US$100 million plus interest in January, the report said, citing the filing. The bank is seeking repayment of the principal amount in addition to interest, the report said. 

Chinese Property Debt

China continues to grapple with debt worries in the property sector, headlined by Evergrande which will meet yuan bondholders next week to vote on a proposed interest rate payment extension.

Shimao – China’s 13th largest developer – is also facing financial troubles and last month, it said it would delay reporting of its annual results to April 30 due to Covid-linked troubles.