Business & Economy

Evergrande says it will pay Shenzhen-listed bonds interest on time

Shanghai, China, Sep 22 (EFE).- The real estate subsidiary of Chinese group Evergrande announced Wednesday it would pay interest due on its Shenzhen-traded 5.8 percent bond from September 2025 on time.

In a Shenzhen exchange filing, Hengda Real Estate Group Co. Ltd., Evergrande’s subsidiary, said it would make a coupon payment on the bond Thursday.

This would mean the timely payment of its obligations in China although it remains to be seen whether Evergrande will pay the interest for its offshore dollar bonds.

The announcement by the group’s main subsidiary comes at a time Evergrande faces a liquidity and debt crisis amid large debt payments due in coming months, something that has caused uncertainty in global markets.

The bond in question, with an issue of 4 billion yuan ($618 million) and listed in Shenzhen under the code 149247, expires in September 2025.

The Chinese housing giant is also due to pay an interest of $83.5 million on bonds maturing in March 2022 in addition to another $47.5 million payment before Sep. 29.

According to the Caixin financial daily, the company has more than 800 billion yuan to be settled in the next 12 months but its current liquidity stands at only 10 percent of that amount. EFE


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