scorecardEvergrande paid another bond interest just in time again, averting a default after Chinese authorities pile on pressure
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Evergrande paid another bond interest just in time again, averting a default after Chinese authorities pile on pressure

Huileng Tan   

Evergrande paid another bond interest just in time again, averting a default after Chinese authorities pile on pressure
Stock Market1 min read
  • China Evergrande paid bondholders interest on a dollar bond due Friday.
  • It's the real estate giant's second narrow pull away from the brink of default in about a week.

China Evergrande has managed to avoid a default again - making bond interest payments just before a deadline today, reported the New York Times and Bloomberg, citing bondholders who have been paid.

The real estate behemoth faces a $300 billion debt pile, with $500 million in payments due by the end of this year.

The company owed $45.2 million in bond interest, which was initially due on September 29. Evergrande missed the deadline but had a 30-day grace period before it would be considered a default. It is unclear if the company paid off the total interest amount today.

Evergrande did not immediately respond to Insider's request for comment.

This latest payment comes a week after the company made an $83.5 million bond coupon payment last Friday that was also paid just before a grace period deadline.

Investors worldwide have been roiled by Evergrande's debt woes, fearing contagion across the global economy should the company default. But Chinese officials have sought to calm nerves about the debt crisis, saying the problems would not spiral out of control.

Chinese authorities have publicly chided Evergrande, telling it to resolve its debt problems and instructing the country's real estate developers to pay their overseas bondholders.

Bloomberg, citing people familiar with the matter, reported that Beijing has also gone as far as telling Evergrande's billionaire founder, Hui Ka Yan, to use his own money to pay the company's debt.

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