Evergrande handed over the interest on the dollar bonds ahead of the prescribed maturity, foreign media reports. This is a moment of respite for the developer in the face of the debt crisis that has shaken the Chinese market. However, the next deadlines for settling debts are approaching inexorably.
Investors are closely following information regarding the financial troubles of the Chinese real estate firm China Evergrande Group, which in September warned that it may not pay off its astronomical debt.
Evergrande transferred 83.5 million dollars in interest by bank transfer, the Chinese Securities Times reports, citing its sources. Reuters also provided unofficial information about the debt repayment by the developer.
Evergrande has paid off some of its obligations
Payment was settled on Thursday. The deadline for paying off the liabilities was on Saturday, October 23.
“This move has brought relief to investors and regulators who are concerned about the threat posed by the developer to global markets. The payoff comes shortly after Chinese officials assure us that creditors will be protected,” notes Reuters.
While $ 83.5 million sounds like no small amount, it is only a fraction of the developer’s massive debt. Evegrande’s total debt is estimated at $ 300 billion. The next bond interest repayment dates are inevitably approaching. The nearest one is on October 29.
According to analyst Travis Lundy of Quiddity Advisors in Hong Kong, Evergrande will pay off another part of its obligations before the end of the month.
– Paying off the interest now would make no sense if the company had no intention of paying off its obligations six days later. However, given the financial difficulties reported by the company, it is unclear whether this will be the case for subsequent payments, he comments.
Main photo source: PAP / EPA / ALEX PLAVEVSKI