October 15, 2018 / 8:51 AM / a month ago

China Huayang Economic and Trade bond default triggered cross-defaults - lead underwriter

SHANGHAI, Oct 15 (Reuters) - China Huayang Economic and Trade Group Co triggered cross-defaults on two short-term commercial paper issues when it defaulted on a bond in late September, the lead underwriter for the commercial paper said Monday.

In a statement posted on the website of the Shanghai Clearing House, Everbright Securities said that Huayang’s default on its 800 million yuan ($115.48 million) puttable medium-term note on Sept. 30 triggered cross-defaults on two 270-day short-term commercial paper instruments also issued by Huayang, each worth 1 billion yuan.

One of the instruments was due to mature on Dec. 16, 2018 and the other on Jan. 20, 2019. Both instruments had coupons of 7.5 percent. ($1 = 6.9274 Chinese yuan) (Reporting by Andrew Galbraith; Editing by Richard Borsuk)

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