China Evergrande Group missed bond interest payment due on Wednesday, but the cash-strapped firm made a partial payment to some of its domestic investors.
- The company was due on Wednesday to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond, after missing $8.5 million coupon payments last Thursday.
- Having liabilities nearly 2% of China’s GDP, Evergrande heightened concerns its crisis could spread through the financial system and pulsate around the world.
- China’s Central Bank on Wednesday encouraged financial institutions to work with relevant departments to maintain the “stable and healthy” development of the real estate market and protect consumers’ interests.
- Meanwhile, Evergrande’s silence on the payment of its offshore obligations has left global investors concerned if they will bear the burden of large losses when 30-day grace periods end for coupons, which were due for payment on September 23 and 29.
The real estate developer’s treatment of offshore investors differs from how the company manages its domestic liabilities.
China Evergrande Group down -20.61%
Source: Reuters