China Evergrande shares swing as bondholders await word on payments

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HONG KONG/SHANGHAI, Sep 30 (Businesshala) – Shares of debt-ridden China Evergrande Group (3333.HK) jumped wildly on Thursday as the company prepared to miss its second bond interest payment in a week, as it added additional were $180 million. Coupons expire in the next month.

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Shares of the company opened sharply, rising as much as 5.21% and falling as much as 7.17% before reversing course. Evergrande Property Services Group (6666.HK) fell 4.2% before narrowing losses to 0.6% and China Evergrande New Energy Vehicle Group (0708.HK) fell to 19.4%. Last time it had lost 8.6%.

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An offshore bondholder, who declined to be named because of the sensitivity of the matter, said his firm had no information from Evergrande about his $47.5 million semi-annual bond interest payment on his 9.5% March 2024 bond. has been found. .

The coupon payment was due on September 29. It was not immediately clear whether payments could still be made during US hours.

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With $305 billion in liabilities, Evergrande has raised concerns that its crisis could ripple through China’s financial system and resonate around the world – a concern that has prompted a Chinese central bank vow to protect homebuyers .

Once China’s best-selling developer and now expected to be one of the largest restructuring companies in the country, Evergrande is prioritizing domestic creditors over offshore bondholders.

While its main entity, Hengda Real Estate Group, announced the resolution of an onshore bond coupon payment through “private negotiations” on 23 September, Evergrande has remained silent about its offshore payment obligations.

“Regardless of how the debt is restructured, Evergrande shareholders and offshore investors, USD-denominated corporate bonds, will suffer major losses,” Jing Sima, chief China strategist at BCA Research, said in a note.

Evergrande, which has about $20 billion in offshore debt, missed an $83.5 million coupon payment on another bond last Thursday.

Coupon payments for September 23 and September 29 have a 30-day grace period.

The company faces a total of $162.38 million offshore coupon payments and a deadline for onshore coupon payments of 121.8 million yuan ($18.84 million) as of October 30.

($1 = 6.4641 Chinese Yuan)

Reporting by Anne Marie Roantree in Hong Kong and Andrew Galbraith in Shanghai; Editing by Christopher Cushing and Gerry Doyle

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