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Some Evergrande offshore bondholders don’t expect payment by Thursday deadline

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© Reuters. A sign for Evergrande is visible at the Beijing office of a luxury residential complex under construction by China Evergrande Group, September 22nd 2021. REUTERS/Carlos Garcia Rawlins

SINGAPORE (Reuters) – Some of China Evergrande Group’s offshore bondholders are not expecting the firm to make an interest payment by a Thursday deadline, a person familiar with the matter said, as worries about the fate of the property developer mount.

Evergrande is trying to find funds to pay many suppliers and lenders. It is expected to pay $83.5m in interest on its $2 billion offshore bond. Next week, it will also pay $47.5m interest.

If the $305 billion in outstanding debt is not paid within the due date, both bonds will default.

It has yet to announce its plans regarding the off-shore bond payment obligation.

Evergrande’s spokesperson did not respond immediately to our request for comment.

The person who spoke on behalf of Evergrande declined to comment due to confidentiality. However, some bondholders do not expect the payment this Thursday. They are still expecting Evergrande’s clarification over the next month.

These bondholders in Asia had not received any information about Evergrande’s Thursday payments by late Thursday evening, according to a first source. Another person who is familiar with this matter also stated that they did not receive any information on Thursday from Evergrande.

Reuters couldn’t determine whether Evergrande told bondholders about its plan to pay the Thursday coupon. According to the first source, there has been little communication.

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