China shakes Evergrand shares as bondholders wait for payment by Reuters

Reuters file photo: On September 26, 2021, a traffic light was seen near the head office of China Evergrand Group in Shenzhen, Guangdong Province, China. Reuters / Ally Song

Written by Anne Marie Roentry and Andrew Galbraith

HONG KONG / SHANGHAI (Reuters) – Shares of debt-ridden China Evergrand Group soared on Thursday as the company could not pay interest on a second bond this week, as an additional 180 180 million coupon deadline would be extended next month.

Shares of the company opened sharply higher, rising 7.21% to 5.21% before reversing the course. Evergrand Property Services Group lost 2.6% and China Evergrand New Energy Vehicle Group dipped 1.4..4%. It last traded 8.6%.

An offshore bondholder, who declined to be named because of the sensitivity of the issue, said he had not received any information from his firm, Evergrand, about the payment of m. 5.5 million in half-yearly bond interest on his. 5.5% March 202 dollar bond in Asia on Thursday morning. . .

Coupon payment was supposed to be on September 29. It was not immediately clear whether payment could still be made within US hours.

With দায় 3,055 billion in liabilities, Evergrande has raised concerns that its financial system could spread its misery and rethink the world – with concerns raised by the Chinese central bank’s promise to protect homeowners.

Once China’s top-selling developer and now expected to be the country’s largest restructuring issue, Evergrand has been prioritizing domestic investors over offshore bondholders.

Although its main unit, Hengda Real Estate Group, announced a solution to an offshore bond coupon payment on September 23rd through “private negotiations,” Evergrand remains silent about its offshore payment obligations.

Jing Sima, chief strategist at BCA Research in China, said: “Whatever the restructuring, Evergrand’s shareholders and offshore investors, USD-denominated corporate bonds will suffer huge losses.”

Evergrande, which has about 20 20 billion in offshore debt, missed ব 83.5 million in coupon payments on another bond last Thursday.

There is an additional 300 days deadline for coupon payments on September 2nd and September 2nd.

The company is facing offshore coupon payments totaling $ 162.38 million and onshore coupon payments 121.8 million yuan ($ 18.84 million) as of October 30.

($ 1 = 6.4641)

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