Relief for markets as Evergrande agrees payment to avoid default on key domestic bond

Relief for markets as Evergrande agrees payment to avoid default on key domestic bond
Evergrande has a debt of £217bn that it has been unable to pay off raising concerns of a possible collapse

中国’s indebted real estate giant Evergrande has said that it will make a coupon payment on its domestic bonds 星期四, in a major relief to Asian and global markets that have been jittery over the anticipation of China’s second-biggest developer defaulting on its due interest.

The Evergrande group’s main unit, earlier known as Hengda Real Estate Group, said in a statement on Wednesday it would make the coupon payment on its Shenzhen-traded 5.8 per cent September 2025 bond on time on 23 九月.

The announcement came after markets globally have been tense in anticipation of a possible default by the cash strapped company which was once the country’s top-selling developer, fearing a domino effect from its collapse.

The assurance of payment is set to provide some relief to investors, 然而, the world’s most indebted real estate developer still has a debt of $300bn (£217bn).

Hengda Real Estate’s coupon payment totals $35.88m (£2.62m), according to Refinitiv data.

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