Beijing: On Wednesday, the main unit of the company informed that it would initiate a bond interest payment on Sept 23 after negotiations with the private shareholders, as global investors fret over a speculated default.
In a Shenzhen exchange filing, the Evergrande Group ( earlier known as Hengda Real Estate Group Co Ltd) said the company would make a coupon payment on its Shenzhen-traded 5.8 per cent that sums to $83.53 on September 2025 bond on time on Thursday. However, the company hasn’t revealed its plan for interest payments.
This announcement stems from reports that surfaced the markets disclosing bankruptcy of China’s second-largest property developer on Tuesday. The Grand Shenzhen headquarters witnessed a huge mob of protestors arguing furiously with the company representatives.
Evergrande has been a prolific infrastructure company in the global market. As the big firm now buckles under the weight of more than$ 300 billion in debt, a panic wave has set off globally. It’s problems come in the backdrop of new restrictions on home sales as Beijing tries to tame real estate prices and address rising concerns about the price of homes. For decades now China has seen no boundaries in infrastructure. Developers like Evergrande built cities from dirt, created employment, and provided a roof to the middle-class society. Along the way, they helped create economic growth that stunned the world.
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