Evergrande, China’s indebted real estate giant, has once again avoided a formal default after a bondholder said the company made an interest payment of $ 148 million on Wednesday, meeting the payment deadline.
Key Comments (via the NY Times)
“Evergrande owed investors interest payments totaling nearly $ 150 million on three bonds, with grace periods for those payments expiring on Wednesday. “
“On Wednesday, the company met its interest payment deadline for bonds maturing in 2022 and 2023. “
“The company has managed to jump from one term to another, fulfilling its obligations at the last minute, but often without explaining how or even publicly revealing that he had done it.”
Despite the optimistic news, S&P Global Ratings has warned of growing contagion risks emanating from the residential real estate market in China.
“The impact of Huarong and Evergrande has been largely contained within China’s speculative grade bonds, but the news hit home buyer sentiment and are spreading contagion in the residential market“S&P Ratings said Thursday.
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