China: Bond Exemption Breather for Evergrande

Wednesday 27 Oct 2021

China Evergrande secures bond extension as property sector turmoil deepens- Oct 21 (Reuters) - China Evergrande Group (3333.HK) has secured more time to pay a defaulted bond, financial provider REDD reported on Thursday, offering rare respite to the developer even as a debt crisis in the broader property sector deepened with more defaults.

News of the three month-plus extension came a day after Evergrande scrapped a deal to sell a 50.1% stake, worth $2.6 billion, in a property services unit that could have eased some immediate pressure on the firm.

Evergrande was once China's top-selling developer but is now reeling under more than $300 billion of debt, prompting government officials to seek to reassure markets that the firm's problems won't spin out of control.

A deepening liquidity crisis, however, continued to reverberate across China's property sector, with more default announcements, and many companies saw their bonds slip again on Thursday after they had rallied last week.

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Source: Reuters



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