Coupon payment has been made.China downplays risk: Bloomberg update Evergrande

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(Bloomberg)-China Ever Grande Group paid interest on dollar bonds before Saturday’s deadline, sending more embarrassed developer stocks and bonds, according to a Securities Times report.

Evergrande sent a $ 83.5 million coupon payment within the 30-day grace period, the newspaper reported, citing “related channels.” Bonds had fallen to 23 cents for $ 1 in anticipation of an impending default after the company missed its first payment on September 23.

Evergrande’s share price surged 7.8% in Hong Kong to HK $ 2.78, with a loss of 82% this year. The company’s 8.25% note, which matures in March, rose 1.3 cents to 25.7 cents at 10:31 am.

This payment provides Evergrande with temporary relief, giving more time to sell assets and raise cash to pay creditors and suppliers. According to analysts, this grace period can be short-lived, with over $ 300 billion in outstanding debt.

Justin Tan, Head of Asia Research at United First Partners in Singapore, said:

Meanwhile, Chinese banking regulators have dismissed concerns that the crisis surrounding Evergrande could have a significant impact on the sector as a whole, even if developer stocks plunge on Thursday.

At a briefing in Beijing, Liu Zhongrui, an official at the Bank of China Insurance Regulatory Commission, said Evergrande was a “personal” case.

Main development:

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Evergrande pays bond interest on Saturday: local media (9:40 am Hong Kong)

According to local media, Evergrande will transfer interest on dollar bonds before the end of the closely monitored grace period, and developers will rest in a debt crisis that shakes the country’s credit market.

Real estate giants have wired a $ 83.5 million payment, and noteholders will receive it by Saturday, the state-run newspaper Securities Times quoted a relevant channel.

Evergrande’s dollar bond has risen by as much as 3 cents for $ 1 since the report, according to credit traders. Its share rose in Hong Kong.

Princeling’s Surprise Default Roils Global Investors (7:45 am HK)

Zeng Jie’s uncle was once the Vice President of China. Her grandfather was Mao Zedong’s Minister of Interior.

Today, the 50-year-old “Princelings” (a term that refers to the descendants of a strong Communist Party founding member) has gained her own fame as a central figure in the rippling turmoil in China’s real estate sector.

Her Fantasia Holdings Group, which is smaller than the troubled giant China Evergrande Group, failed to repay $ 205.7 million in bonds earlier this month, resulting in dramatic sales in the offshore market. , Some investors saw it as a precursor to the worsening liquidity crisis. A highly leveraged real estate company in China.

Offshore creditors may seek negotiations after the grace period (1:20 pm New York)

Evergrande offshore creditors may seek stagnation and debt negotiations with the company if they fail to pay interest by the Saturday grace period, according to people with knowledge of the matter.

Kirkland & Ellis and Qarun (NYSE :) & Co. Bondholders advised by the company do not plan to demand repayment shortly after the deadline, hoping that the company will come to the table to discuss unpaid options. Said those who asked not to reveal their identities discussing confidential matters.

Evergrande has reached its deadline, according to a Securities Times report.

Hopson: Evergrande’s request to change terms is unacceptable (noon New York)

According to a filing with the Hong Kong Stock Exchange, Hopson Development has requested significant changes to the agreement to sell shares in the real estate management division, including payment terms, after Evergrande signed it.

China vows to protect the curb of property. Evergrande Risk Limited (4:25 pm HK)

Banking regulators in China have vowed to continue to curb the country’s real estate market, dismissing concerns that the crisis surrounding Evergrande will have a significant impact on the credit profile of the entire sector.

Bank of China Insurance Regulatory Commission Liu Zhong-Louis official said at a briefing in Beijing on Thursday that real estate management has achieved good results and the government will use the real estate sector as a short-term economic stimulus. He said he would refrain from doing so. He said Evergrande is an “individual” case and does not undermine the overall credibility of Chinese companies that are underpinned by the stability of China’s economy.

China Real Estate Purge Hammer is a weak player with strong profits (4:07 pm HK)

China’s real estate sector has experienced the biggest credit market turmoil in the last few years as policy makers are trying to crack down on over-debt developers without infecting healthier rivals. ..

Companies with the worst balance sheets are being crushed by soaring borrowing costs. This is a phenomenon that will intensify this month as the bill expires. At least three Chinese developers default in October, one could struggle to pay interest on Friday, and another three months extension of notes due on Monday Could not be obtained.

Evergrande secures jumbo fortune bond expansion: REDD (1:15 pm HK)

Evergrande has signed a developer-guaranteed $ 260 million extension agreement for more than three months, according to a REDD report citing two sources described by bondholders. bottom. According to the report, after Evergrande agreed to provide additional collateral, an agreement was reached earlier this week, with developers planning to seek the opinion of the Guangdong provincial government before delaying the payment of dollar coupons.

Evergrande deadline:

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Coupon payment has been made.China downplays risk: Bloomberg update Evergrande

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