The Strategist

China's biggest property developer says it will avoid defaulting on its next payment

09/22/2021 - 10:27

China's Evergrande, which is on the verge of bankruptcy, has promised to pay $35.9m on bonds on 23 September.

Essnglkoerm Huong
Essnglkoerm Huong
The main unit of major Chinese property developer Evergrande Group has promised to make payments on some of its debts on September 23, Reuters wrote. The company will pay interest to bondholders totalling $35.88 million, the agency said, citing data from its Refinitiv service. The payments will be made on bonds maturing in 2025.

The company is approaching a key deadline for payments on dollar-denominated bonds as well, Reuters added. On 23 September, the $83.5m bond maturing in 2022 is due on 23 September and Evergrande has not said whether it will be able to pay the money, according to Reuters. On 29 September, Evergrande is due to pay a further $47.5m on bonds maturing in 2024, the agency said. Both issues could be in default if the company fails to pay interest within 30 days of the scheduled payment date.

According to the agency, Evergrande's announcement will bring some relief to financial markets, which in recent days have feared the bankruptcy of China's second-largest property developer. Evergrande's total debts exceed $300bn, the BBC wrote. The company is so large and connected to the Chinese economy that its collapse would spread to global markets, CNBC noted.