China Evergrande arranges $2.4 billion in funds to repay offshore bonds

HONG KONG (REUTERS) – China Evergrande Group, China’s most indebted property developer, said on Thursday (June 24) it had arranged its own funds of HK$13.6 billion (S$2.4 billion) to repay bonds due on Monday, as well as to pay interest on all other dollar bonds.

The funds are to be remitted into the bond repayment account, the company said, adding that it has no further bonds due before next March, whether onshore or off.

On Monday, Reuters reported that Evergrande had planned to repay its US$1.5 billion (S$2 billion) offshore bond maturing on June 28, ahead of schedule.

Some of the bonds of Evergrande and its subsidiaries have been sold off in recent weeks, as investor concerns have grown over its ability to make timely payments.

Shares of Hong Kong-listed Evergrande rose 1.15 per cent in Thursday’s morning session, versus a 0.1 per cent gain in the benchmark. It had plunged 18 per cent in the past month to its lowest since March last year.

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