12/19/2023 0 Comments Evergrande bond default![]() ![]() “This sends a signal that China is not interested in making this a bigger issue, especially for foreign holders in this case. Debt-ridden property developer Evergrande Group missed a dollar bond interest payment deadline, moving closing to a potential default and fuelling worries that a collapse could send shockwaves. Teetering Chinese property giant Evergrande makes 83M payment to avoid default for now. It appears that Chinese authorities are “behind all this to make sure that we can avoid a spillover into the broader economy and also outside of China,” Hans Goetti, founder and chief executive officer of HG Research, said on Bloomberg TV. On Thursday, three days after a deadline passed leaving bondholders with nothing but silence from the company, a major credit ratings firm declared that Evergrande was in default. Evergrande strikes deal to meet Chinese bond payment, but foreign dollar investors still up in air. Regulators in Beijing are trying to reassure markets that the world’s second-largest economy can weather the crisis at Evergrande and its smaller rivals, with Vice Premier Liu He becoming the highest-ranking official to assure that risks in the property market are controllable. ![]() At least three developers defaulted on their dollar debt this month as junk bond yields surged to a decade-high.Ī gauge of Chinese real estate companies rallied 2.1%. Evergrande, which could trigger one of China's largest defaults as it wrestles with debts of more than 300 billion and whose troubles have already sent shockwaves across global markets, missed. Evergrande has not yet made payments to bond holders that were due on Monday. A government clampdown on leverage at indebted developers and measures to cool home prices have spurred a slump in sales and weighed on economic growth. And concerns are mounting that if it defaults on its debt, it could spell disaster for China’s property market and send. Evergrande, which ratings agency S&P Global says is the worlds most-indebted real estate developer, said it will make a payment due on a 4 billion yuan (620 million) bond. Payment of the coupon may ease concern over the health of China’s property sector. Country Garden, which is currently at the center of China’s property crisis, must pay 15.4 million coupon on a dollar bond by the end of a 30-day grace period Oct. China Evergrande Group is deeply in the red to the tune of 300bn. It needs to pay interest on another four dollar notes this year. Evergrande has a hefty wall of maturing debt next year with some $7.4 billion coming due in onshore and offshore bonds. ![]()
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