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China Evergrande gets six months’ relief as creditors agree to defer interest payments on two onshore bonds
- Holders of two onshore bonds totalling 20 billion yuan (US$3 billion) agreed to extend the coupon payment deadline by six months
- More than 99 per cent of bondholders voted on a motion to revise the interest payment arrangement
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China Evergrande Group’s creditors have agreed to defer interest payment on a yuan-denominated bond for six months, giving the world’s most indebted property developer more time to overcome its liquidity crisis.
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The Chinese developer gained their approval to extend the interest payments on two onshore bonds totalling 20 billion yuan (US$3 billion), due on May 6, to November 6, according to a filing to Shanghai Stock Exchange.
Evergrande had issued a 15 billion yuan four-year bond carrying an interest rate of 6.27 per cent and a 5 billion yuan five-year note with a coupon of 6.8 per cent on May 6, 2019.
In its meeting with bondholders on April 28 and 29, more than 99 per cent voted on a motion to revise the interest payment arrangement, the company said in the filing.
The six-month breathing room offers some relief to Evergrande, which is saddled with 1.97 trillion yuan of liabilities, to offload its asset to address its liquidity crisis.
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