China

China Evergrande’s Hengda Wins Reprieve on Coupon Payment

 

Debt-laden developer China Evergrande Group‘s arm Hengda Real Estate Group said it has received a six-month reprieve on a 574-million-yuan ($88 million) coupon payment that was due on Wednesday.

Struggling with more than $300 billion in liabilities, the giant property developer defaulted on some payments for its offshore bonds last year.

Onshore bondholders of Hengda’s 7% 2026 bond have agreed to delay the coupon payment to October 27, Hengda said in a filing late on Tuesday.

Evergrande said last month it would unveil a debt restructuring proposal for its offshore creditors by the end of July.

The developer’s dollar bond due April 2023 traded at 11.815 cents on the dollar on Wednesday morning, versus 12.247 a day earlier.

Hengda Real Estate’s is the latest of several payment extensions for Evergrande’s onshore bonds.

 

 

  • Reuters with additional editing by Sean OMeara

 

 

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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