SHANGHAI (AFP, REUTERS, BLOOMBERG) - Embattled Chinese housing giant Evergrande said Wednesday (Sept 22) it had agreed a deal with domestic bondholders that should allow the conglomerate to avoid default on one of its interest payments.
In a statement to the Shenzhen stock exchange, Evergrande’s property unit Hengda said it had negotiated a plan to pay interest worth 232 million yuan (S$48.48 million) for its 5.8 per cent 2025 onshore bond. There was no mention of its repayments on interest for an offshore bond.
Hengda said investors “who bought and held the bonds” before September 22, 2021 “are entitled to interest paid this time”.
Evergrande, with over US$300 billion (S$405 billion) in liabilities, is in the throes of a liquidity crisis that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of US$83.5 million due on Thursday.
China stocks opened sharply lower on their return from a public holiday on Wednesday, playing catch-up with global markets which were roiled at the start of the week by fears of a messy collapse of Evergrande.
Both the CSI300 index and the Shanghai Composite Index lost more than 1 per cent in opening deals on Wednesday. The CSI300 Real Estate index started nearly 2 per cent lower, but recouped losses in early trading. The CSI300 Banking Index fell nearly 3 per cent.
Evergrande’s Hong Kong-listed shares tumbled over 10 per cent during the first two days of the week, when mainland markets were closed for the Mid-Autumn Festival. Fears of spillover effect knocked property and banking shares.
The Hong Kong market was shut on Wednesday for a public holiday.
Singapore shares also opened weaker on Wednesday, with the Straits Times Index (STI) slipping 0.6 per cent as at 9.02am.
China’s central bank also increased its injection of short-term cash into the financial system on Wednesday.
The People’s Bank of China injected 120 billion yuan into the banking system through reverse repurchase agreements, exceeding the 30 billion yuan of maturities on Wednesday.
“The PBOC kept its net injection against a possible market plunge,” said Zhaopeng Xing, senior China strategist at Australia & New Zealand Banking Group Ltd. “This will soothe the tightness and keep liquidity loose. Next week will see big fiscal spending flows, which will solve the quarter-end liquidity issue.”
Evergrande is so deeply intertwined with China’s broader economy – from retail investors to infrastructure-related firms that are a gauge for global commodities demand – that fears over contagion have kept financial markets on tenterhooks. “There’s been a fair bit of concern about the possibility of contagion,” analysts at New York-based Bespoke wrote in a research note on Tuesday.
“But so far that concern isn’t showing up in parts of the credit markets that have served well as red flags for broader credit crunches in the past.”
The developer has not indicated whether it will be able to pay US$83.5 million in interest due on its March 2022 bond on Thursday. It has another US$47.5 million payment due on Sept 29 for March 2024 notes.
Both bonds would default if Evergrande fails to settle the interest within 30 days of the scheduled payment dates.
https://news.google.com/__i/rss/rd/articles/CBMigAFodHRwczovL3d3dy5zdHJhaXRzdGltZXMuY29tL2J1c2luZXNzL2NvbXBhbmllcy1tYXJrZXRzL2NoaW5hLWV2ZXJncmFuZGUtdW5pdC1zYXlzLXRvLW1ha2Utb25zaG9yZS1ib25kLWludGVyZXN0LXBheW1lbnQtb24tc2VwdNIBAA?oc=5
2021-09-22 02:58:51Z
52781886928127
Tidak ada komentar:
Posting Komentar