Embattled property giant China Evergrande Group has made an overdue interest payment to the trustee for its dollar bonds, according to a report by the WSJ.
- The company paid out $83.5 million, which will be paid out to bondholders, as reported on state-owned Securities Times, run by the Communist Party’s flagship People’s Daily publication.
- Evergrande was about to reach the end of a 30-day grace period before bondholders would send a notice of default to the company, as it failed to pay some $2.03 billion of bonds last month.
- Should the bonds default, this would have marked the biggest in Asia, as the company remains among the top developers in China with over $300 billion in total liabilities as of end-June.
- A number of bondholders did not expect Evergrande to make the payments within the grace period, as it failed to pay its outstanding dollar debt of about $20 billion.
Evergrande still has to pay $45 million by October 29, when the grace period on another missed payment ends. 3333 closed up 4.26%.