(Yicai Global) March 5 -- China's expiring corporate bonds are expected to reach a historic high of CNY1.09 trillion (USD168.4 billion) this month as many bonds issued amid the Covid-19 pandemic are nearing the end of the line.

Next month, the total should be CNY910 billion (USD140.5 billion), China International Capital said in a recent report. Moreover, some CNY230 billion worth of notes will enter an earlier agreed period when investors can choose to sell the note back to the issuer. In March, that tally will be CNY240 billion.

These two months are peak periods of redemption. The combined March and April sum of expiring or potentially resold notes makes up 27 percent of all due this year, according to the financial institution's calculation. The tally of maturing bonds over these two months has jumped by 46 percent from a year ago.

Ominous clouds hang over the deadlines. As many debts are maturing at the same time, investors need to be alert to unexpected defaults, extensions, and discount repurchases, some industry insiders said to Yicai Global.

Companies are predicted to respond to the trying times by issuing notes on more attractive terms. Amid pressures of maturing debts, firms may moderately raise their new bonds' coupon rates to meet the investors' needs, said Ming Ming, deputy director at Citic Securities Research Institute.

They may also issue more notes with different durations to roll over their earlier debts, Ming added.

Most of the daunting debt consists of municipal bonds. A total of CNY584 billion worth of muni bonds will mature in March and April, with CNY189.7 billion to enter the period of potential payback.

Second in line are real estate firms. These companies need to pay back CNY147.3 billion worth of maturing bonds. Some CNY84.5 billion (USD13 billion) worth of notes is entering a reselling period.

Moreover, the coal industry has been borrowing heavily as the total scale of expiring bonds will reach CNY110 billion over these two months.

Real estate and coal investors are worried amid the tightening regulation and nearing repayment, making it hard for these firms to refinance their debts, which calls for special attention to those fields, CICC said in the report.

Editor: Emmi Laine, Xiao Yi