China evergrande bond default8/1/2023 ![]() What's next for Evergrande?Įvergrande's future will hang in the balance for some time yet.īankers and analysts told Reuters that Beijing would stand firm on policies to curb excess borrowing by property developers, even as it makes financing tweaks amid an industry liquidity crunch. Xu is worth an estimated $7.2 billion ($A9.89 billion), according to Bloomberg's Billionaire Index. But with the company's liabilities around 40 times that, Xu alone could not save Evergrande. China’s central bank said on Monday it would cut the amount of cash that banks must hold in. Some outlets have reported that Evergrande have sold off private jets and that a mansion has been used as collateral to secure bank loans. On Tuesday, Evergrande said it’s at risk of a cross default, which means such risks could spill into other related sectors. The latest news sent Evergrande shares down 20 in Hong Kong, to a record low of HK1.81 (17p). ![]() Overseas media have also reported that Evergrande's billionaire founder and chairman Xu Jiayin could be forced to pay some of the debt from his personal wealth. The stadium is believed to around 12 billion yuan ($A2.6 billion) and has been designed to seat more than 100,000 - making it the world's largest venue built for soccer by capacity. Guangzhou City Construction Investment Group is said to be close to acquiring Evergrande's Guangzhou FC Soccer stadium and surrounding residential projects. The developer said last week that a newly established risk-management committee is utilizing its extensive resources to defuse risk and protect the interests of all parties.Ĭhina’s central bank governor said earlier this month that Evergrande’s debt woes will be dealt with in a market-oriented way, signaling Beijing’s reluctance to bail out the firm as it strains under more than $300 billion in liabilities.A state-owned company is said to be a potential buyer for the unfinished Guangzhou Evergrande Soccer Stadium, which was developed by China Evergrande Group. The 5 billion Evergrande is likely to get from the reported stake sale would theoretically cover its near-term offshore bond. 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. Evergrande declined to comment ahead of an official announcement. 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 rating downgrade on Thursday comes after several attempts by China Evergrande, the world’s most indebted developer, to stave off such an event through last-minute bond payments a couple of. Evergrande needs to pay a 232 million yuan (36 million) coupon on an onshore. ![]() It met the deadline for its last major offshore bond repayment of 83.5m on 23 October, but only at the last. There is a 30-day period before a missed payment is considered a default, according to the bond’s covenants. ![]() The embattled firm has $50.4 million worth of coupon due on a 7.5% 2023 bond and another $204.8 million tied to a 8.75% 2025 note, according to Bloomberg-compiled data. The S&P analysts believe Evergrande is likely to default on its debt eventually. China Evergrande makes a payment before a default deadline, state media says. (Bloomberg) - China Evergrande Group will face an initial interest payment deadline for two dollar bonds Tuesday, in the property giant’s first major test of investor confidence after it was officially labeled a debt defaulter.
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