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Several bondholders of China Evergrande receive overdue bond coupon payments

by Mike Robinson

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© Reuters. FILE PHOTO – The logo of China Evergrande Group can be seen at the Shenzhen headquarters in Guangdong, China, September 26th, 2021. REUTERS/Aly Song

HONG KONG, (Reuters) – Several bondholders in China Evergrande Group received coupons payments from the property developer. The payment, which was heavily indebted, Chinese media outlet Cailianshe reported Thursday. This relieves concerns of a possible destabilising default.

Reports cited several bondholders who claimed they had received interest payments for the three bond tranches, which totaled $148 million and had an interest payment grace period ending Wednesday.

Evergrande has struggled with its liabilities of more than $300Billion, including $19B in international market bonds. This makes it the world’s largest developer.

Failure to pay could have led to a company-wide default and would trigger cross-default provisions on Evergrande dollars bonds. This would increase the debt crisis that is raging over the second largest economy in the world.

Evergrande couldn’t be reached immediately for comment.

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