8 Nov 2021
Evergrande Coupon Still Unpaid as Focus Moves to Stronger Companies
The Index Today
China’s Evergrande Group debt is pushing investors’ concerns towards other credible property companies as a selloff for dollar bonds. The holders of bonds given by Evergrande have stated they are yet to receive payment for coupons. The dollar bond coupons were due on the 6th of November for $41.9 million and $40.6 million.
On Monday, the investment-grade dollar notes decreased in value as real-estate developers’ debt fell and investors looked at the possibility of overall decline in the industry. With the upcoming communist party convention, investors remained alert for any policy changes. Evergrande’s 13% dollar note showed a 4.7 cent rise in the previous weeks.
In an interview with Bloomberg TV, SC Lowy Chief Executive Officer Michel Lowy said, “There is no doubt that a restructuring is going to be needed at some point in the very near future. Recent Evergrande bond gains in the light of coupon payments reflect a level of optimism that is sort of mind boggling.”
The property developer is expected to make payments and complete a few transactions despite the risk of restructuring. Sino Ocean Group Holding Ltd is among the latest firms to see its bonds decline, hinting towards the fact that not even state-owned companies are safe from the ongoing crisis.