(Yicai) March 21 -- China Aoyuan Group completed its offshore debt restructuring yesterday, meaning that the struggling Chinese property developer has managed to reorganize both its onshore and offshore liabilities, ensuring that it avoids default.

Aoyuan will issue new financial tools to swap USD6.1 billion of offshore debt to reduce its liabilities by USD4.9 billion over the next eight years, according to the debt-restructuring scheme that was approved by a Hong Kong court in January.

These financing tools consist of four new bonds worth a combined USD2.3 billion, one perpetual bond worth USD1.6 billion, USD1.4 billion in common shares and USD143 million in convertible notes.

Aoyuan is emerging from a debt crisis that started in January 2022. Last September, the Guangzhou-based company was able to extend 12 yuan-denominated bonds for three years.

And sales are improving. Aoyuan delivered 35,400 apartments with a floor area of about 4.1 million square meters, more than in 2022, according to company data.

Aoyuan has a number of projects on the country’s new 'whitelist' property financing program that was rolled out in January. And other developments in Guangdong province, Zhengzhou in central Henan province, Shenyang in northeastern Liaoning province and the municipality of Tianjin are also set to be added to the white list.

Editor: Kim Taylor