A Chinese municipal borrower has stated it possesses sufficient funds to repay 1.08 billion yuan ($160 million) in offshore notes maturing next week. This assurance comes after reports indicated a delay in its plan to refinance this debt through a new bond sale.

Sources close to the matter revealed that the refinancing attempt encountered a setback, prompting the borrower to publicly address its repayment capabilities. The company is aiming to assuage concerns among investors following the unexpected hitch in its debt management strategy.

The situation highlights the ongoing scrutiny of Chinese local government financing vehicles (LGFVs) and their ability to manage offshore obligations. Despite the delayed bond sale, the borrower's confidence in meeting its upcoming payment obligations remains firm.