A housing complex by Chinese property developer Evergrande in Beijing. The indebted Evergrande has remitted the funds for a key interest payment that was due Sept. 23 — ahead of a 30-day grace period, Chinese state media Securities Times reported.
Noel Celis | AFP | Getty Images
Evergrande has remitted the funds for a key interest payment that was due Sept. 23 — ahead of a 30-day grace period that ends Saturday, according to Chinese state media Securities Times.
Shares of Evergrande popped more than 4% on that news.
The $83.5 interest payment on Evergrande’s March 2022 offshore bond has been closely watched since the heavily indebted property developer warned twice in September that it may default. Dollar bonds are largely held by foreign investors.
The Securities Times report said Evergrande plans to make the interest payment in time for the Oct. 23 deadline, and that the embattled property developer had remitted the $83.5 million through Citibank. The bank declined CNBC’s request for comment.
CNBC has also reached out to Evergrande for comment.
Evergrande missed four other coupon payments in September and October. There are other interest payments on its U.S. dollar bonds due in November and December.
In total, Evergrande has missed payments of at least $279 million since last month, according to Reuters —this figure would include the Sept. 23 payment.
The world’s most indebted property developer is buckling under the weight of more than $300 billion in debt, and has been struggling to raise funds to pay suppliers and investors.
Markets had widely expected Evergrande to default on the interest payments, as analysts said domestic investors would be prioritized over foreign investors.
However, last week, China’s central bank said property firms that have issued bonds overseas — referred to as offshore bonds — should actively fulfil their debt repayment obligations.
— This is a developing story. Please check back for updates.