China Evergrande Misses Two More Dollar Bond Interest Payments, Debt Woes Continue

14-Oct-2021 Intellasia | | 5:53 AM Print This Post

China Evergrande Group’s (HK:3333) debt woes continue, after some holders of two of the developer’s US dollar bonds with coupons due Monday saying they had yet to receive payment.

The investors are yet to receive the coupons on the developer’s 9.5 percent note due 2022, and its 10 percent bonds due 2023 as of 5 p.m. in Hong Kong on October 11. The total interest due for China Evergrande, along with the payment due on a third 10.5 percent note due 2024, was about $148 million, according to Bloomberg.

China Evergrande also missed the initial coupon deadlines for two other offshore bonds in late September 2021. Creditors have also yet to receive repayment a separate dollar bond they say is guaranteed by Evergrande and one of its units, Bloomberg said last week.

The company has a 30-day grace period before any missed payment would constitute a default, according to at least one of the bond’s offering memoranda.

China Evergrande’s Hong Kong shares have been suspended for trading since October 4. Shares in Evergrande Property Services Group Ltd, the developer’s property-services arm, were also suspended on the same day.

Meanwhile, Sinic Holdings Group Co. said in a Hong Kong Stock Exchange filing that it does not expect to make payments of the principal, and the last installment of interest, due October 18 for a $250 million bond issue. The Chinese real estate developer added that an event of default will likely occur.

The Central Commission for Discipline Inspection also began a two-month anti-graft inspection of the China Banking and Insurance Regulatory Commission and will accept complaint reports from whistleblowers until December 15, according to a statement issued on Monday.

The check of the nation’s financial regulators, biggest state-run banks, insurers, and bad-debt managers for the first time in six years come as Chinese authorities ramp up efforts to root out corruption in the $54 trillion financial system.


Category: China

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