Evergrande faces first big post-default dollar bond coupon test
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Evergrande has $68.4 million worth of coupon due on a 7.5 per cent 2023 bond.
PHOTO: REUTERS
BEIJING (BLOOMBERG) - China Evergrande Group will face an initial interest payment deadline for two US dollar bonds on Tuesday (Dec 28), in the property giant's first major test of investor confidence after it was officially labelled a debt defaulter.
The embattled firm has US$50.4 million (S$68.4 million) worth of coupon due on a 7.5 per cent 2023 bond and another US$204.8 million tied to a 8.75 per cent 2025 note, according to Bloomberg-compiled data. Evergrande has a 30-day grace period to deliver the payments before a default can be declared, according to a bond issuance document seen by Bloomberg News.
The imminent debt obligations come after major international rating firms formally described Evergrande as a defaulter earlier this month, following a series of payment failures on dollar notes.
The developer said last week that a newly established risk-management committee is utilising its extensive resources to defuse risk and protect the interests of all parties.
China's central bank governor said earlier this month that Evergrande's debt woes will be dealt with in a market-oriented way, signalling Beijing's reluctance to bail out the firm as it strains under more than US$300 billion in liabilities.
