Evergrande made a repayment of a missed bond interest payment, days before a deadline that would have forced a formal default.
- On Friday, Securities Times reported that a day earlier, the real estate group paid $83.5 m interest payment to Citibank, the trustee and that the funds would be paid to investors before the expiry of the grace period.
- The property developer’s failure to pay the coupon by the September 23 deadline increased volatility concerns and a reckoning over the health of China’s slowing real estate sector.
- The missed payment led to a 30-day grace period that was due to expire at midnight in New York on Saturday, leading to default and opening the way for a group of investors with adequate holdings of the holds to initiate legal action.
Reports of the last-minute payment came after a moment of uncertainty for investors, but Evergrande did not record a formal statement to clarify implications for the group’s future.
Evergrande up +4.26%