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Evergrande pays missed dollar bond coupons, according to Chinese state media

Evergrande, a heavy-duty Chinese real estate developer, has repaid unpaid interest payments on dollar bonds just days before the deadline, which would have forced it to formally default, state media reported.

The Securities Times reported on Friday that the real estate group would send $ 83.5 million in interest to its trustee, Citibank, the day before, paying investors before the grace period expires this weekend.

Evergrande Payment failure Coupons by the September 23 deadline provided views on the health of China’s slowing real estate sector, which has caused volatility across the international market and is under government pressure. Reduce leverage..

The missed payment resulted in a 30-day grace period, which was due to expire at midnight in New York on Saturday. The result was a default, paving the way for a group of well-held investors to take legal action.

The news of the last payment came after a period of uncertainty for investors, but Evergrande has filed a formal statement or regulatory agency in Hong Kong to clarify the impact of the group on the future. Did not provide.

“I don’t think this will significantly change the likelihood of restructuring, but it will probably soon delay the company’s need to engage with creditors,” said one who advised investors. “I think bondholders are still in” waiting “mode. “

Evergrande’s Hong Kong-listed stock rose 7.8% on Friday, well on its way to the first rise since late September, when developers revealed that they had raised RMB 10 billion ($ 1.5 billion). increase. Sell ​​part of the stock With a local Chinese lender.

Hong Kong’s Hang Seng Mainland Real Estate Index rose 3.43%, while the broader Hang Seng Index rose 0.39%.

The group, which has total debt of over $ 300 billion and has missed four other offshore interest payments in recent weeks, Break that silence Regarding payment of documents to be submitted on Wednesday stating that the grace period has not expired.

International bondholder advisors this month There is no “meaningful engagement” The company expressed concern about the pursuit of asset sales.

Beijing also took part in the matter for the first time last Friday, and officials at the People’s Bank of China blamed the company’s liquidity crisis, but said its spillover to the financial system was “controllable.”

The Bank of China Insurance Regulatory Commission said at a briefing in Beijing on Thursday that Evergrande was an “individual” case.

Some of Evergrande’s peers, such as the fantasia group of high-end developers and Sinic Holdings Default Yields on risky Chinese borrowers in the international market have skyrocketed to their highest levels since 2009.

Another developer, Kaisa, will pay interest on the bond on Friday and is being watched closely. Bonds are trading at $ 1.35.

Evergrande’s liquidity crisis, which started in July and warned the company about default risks at the end of August, has fueled one of the expectations. Largest restructuring process In the history of China.

One of the long-time investors in Chinese real estate bonds has suggested that the payments announced on Friday are “temporary” measures that mean “buying time.” [and] Avoid proceedings for now. “

Suspension of trading on Evergrande for more than 2 weeks Unlocked on Thursday After the company revealed a week ago that it had discontinued the possibility of selling its real estate services division.

A potential buyer, Hopson Development Holdings, said in a statement late Thursday that it considered the transaction “legally binding” after seeking legal advice.

Evergrande said this week that it would “fully cooperate” with inquiries about accounts from Hong Kong’s Accounting Watchdog. Investigate PwC audits Company’s.

Evergrande did not immediately respond to the request for comment.

Evergrande pays missed dollar bond coupons, according to Chinese state media

Source link Evergrande pays missed dollar bond coupons, according to Chinese state media

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