(Bloomberg) – The China Evergrande group made an interest payment on a dollar bond ahead of Saturday’s deadline, according to a Securities Times article, pushing up the struggling developer’s stocks and bonds.
Evergrande transferred a coupon payment of $ 83.5 million within the 30-day grace period, the newspaper reported, citing “relevant channels.” The bond was trading as high as 23 cents to the dollar amid expectations of an impending default after the company missed the initial payment due on September 23.
Evergrande stock jumped 7.8% in Hong Kong to HK $ 2.78, reducing this year’s loss to 82%. The company’s 8.25% note maturing in March jumped 1.3 cents on the dollar to 25.7 cents at 10:31 am.
The payment offers temporary relief to Evergrande, giving it more time to sell assets and raise funds to pay creditors and suppliers. The reprieve could be short-lived, however, with more than $ 300 billion in debt owed, analysts said.
“We’ve seen this before – a single bond repayment doesn’t solve the business problem or change the fact that they’re living dead,” said Justin Tang, head of Asian research. at United First Partners in Singapore.
The Chinese banking regulator, meanwhile, dismissed concerns that the crisis enveloping Evergrande would have a major impact on the sector as a whole, even as the developer’s shares plunged on Thursday.
Evergrande is an “individual” case, Liu Zhongrui, an official with China’s Banking and Insurance Regulatory Commission, said at a briefing in Beijing.
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Evergrande Pays Bond Interest Due Saturday: Local Media (9.40 a.m. HK)
Evergrande shifted interest on a dollar bond before the end of a closely watched grace period, local media reported, in what would be a respite for the developer amid a debt crisis that rocked the the country’s credit market.
The real estate giant has wired the payment of $ 83.5 million and noteholders will receive it before Saturday, state newspaper Securities Times said, citing the channels concerned.
Evergrande’s dollar bonds were quoted up to 3 cents on the dollar after the report, according to Credit Traders. Its shares rose in Hong Kong.
Princeling’s surprise default upsets global investors (7:45 a.m. HK)
Zeng Jie’s uncle was once vice president of China. His grandfather was Mao Zedong’s Minister of Home Affairs.
Today, the 50-year-old “princely” – a term that refers to the descendants of powerful founding members of the Communist Party – is gaining fame as a central figure in the turmoil in China’s real estate industry.
While its Fantasia Holdings group is small compared to struggling giant China Evergrande Group, its shocking failure to repay a $ 205.7million bond earlier this month sparked a sell-off in the offshore market, with some investors. seeing it as a harbinger of a worsening liquidity crisis for heavily indebted Chinese real estate companies.
Offshore Creditors May Request Talks After Grace Period (1:20 PM NY)
Evergrande’s offshore creditors can ask for a standstill and debt talks with the company if it doesn’t pay the interest within the Saturday grace period, according to people with knowledge of the matter.
The bondholders, some of whom are receiving advice from Kirkland & Ellis and Moelis (NYSE 🙂 & Co., do not plan to demand immediate repayment after the deadline in the hopes that the company will come to the table to discuss options for missed payment. , said the people, who asked not to be identified when discussing confidential matters.
Evergrande has now met the deadline, according to a Securities Times article.
Hopson: requests to modify Evergrande’s conditions are unacceptable (noon NY)
Hopson Development says Evergrande requested substantial changes to an agreement to sell a stake in its property management arm after it was signed, including payment terms, according to a filing on the Hong Kong Stock Exchange.
China pledges to maintain ownership restrictions; Evergrande Risk Limited (4:25 p.m. HK)
The Chinese banking regulator has pledged to maintain its restrictions on the country’s real estate market, dismissing fears that the crisis enveloping Evergrande could have a major impact on the credit profile of the sector as a whole.
Real estate checks have been successful and the government will refrain from using the real estate sector as a short-term economic stimulus measure, Liu Zhongrui, an official with the China Banking and Insurance Regulatory Commission, said at the meeting. ‘a briefing in Beijing on Thursday. Evergrande is an “individual” case and will not harm the overall credibility of Chinese companies, which is supported by the country’s economic stability, he said.
China Property Purge Hits Weak Players As Large Gain (4:07 PM HK)
China’s real estate industry is experiencing its biggest credit market upheaval in years as policymakers try to crack down on over-indebted developers without infecting their healthier rivals.
Companies with the worst balance sheets are being crushed by skyrocketing borrowing costs, a phenomenon that intensifies this month as bills fall due. At least three Chinese developers defaulted in October, one may struggle to pay interest due Friday, and another failed to secure a three-month extension for a note due Monday.
Evergrande gets expansion on Jumbo Fortune Bond: REDD (1:15 p.m. HK)
Evergrande has secured an agreement for a more than three-month extension on a $ 260 million bond issued by Jumbo Fortune and guaranteed by the developer, according to a REDD report citing two sources briefed by the bondholders. The deal was reached earlier this week after Evergrande agreed to provide additional collateral and the developer will seek the advice of the Guangdong government before making the deferred dollar coupon payments, the report said without identify the source of the information.
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