China Evergrande misses another USD payment
The world’s most indebted property developer has been scrambling to pay its suppliers, and warned investors twice in as many weeks that it could default on its debts.
BEIJING - China has urged banks to steady the housing market and avoid speculation as fears mount that Evergrande's debt crisis could spill over into the property sector. #BangkokPost #World https://t.co/zfzA2anAwO— Bangkok Post (@BangkokPostNews) September 30, 2021
Troubled Chinese conglomerate Evergrande Group missed paying bond interest due on Wednesday, its second unpaid offshore debt payment in a week, although the cash-strapped company is scrambling to meet its obligations in its home market.
Evergrande sells $1.5 billion stake in a bank to help settle debts https://t.co/aNAp5vTXxS— The Boston Globe (@BostonGlobe) September 30, 2021
China's largest real estate developer Evergrande Group didn't pay bond interest due this week - its second unpaid offshore debt payment, but the cash-strapped company is scrambling to meet its obligations in its home market.
The company, with a mounting debt over $305 billion, was due on Wednesday to execute a $47.5 million bond interest payment on its 9.5% March 2024 offshore bond, after having missed $83.5 million in coupon last week.
The Evergrande saga continues. The PBOC urged banks to steady the housing market and avoid speculation, as fears mount of debt risk spillover into the property sector. WeChat groups of disgruntled investors were also silenced, as police stifle organising: https://t.co/MZHIiaZe47— Laurie Chen (@lauriechenwords) September 30, 2021
With debt burden equal to 2% of China's GDP, property developer has spooked the markets that its troubles could spread through the financial system around the world, though fears have eased somewhat after the central bank of China vowed to protect homebuyers' interests.
The central bank also stressed that "houses are used for living, not speculation". #Evergrande— People's Daily app (@PeoplesDailyapp) September 30, 2021
The Evergrande's silence on its offshore coupon payment obligations has, however, left bond investors doubting if they will have to take large losses when 30-day grace periods end for coupons that were due this and last week.
The structure of Evergrande Group and the lack of comprehensive data on the company's assets and liabilities make it hard to identify a more precise way of recovery.