At least some of China Evergrande’s offshore bondholders had not received a due coupon payment by the close of Asia business on Wednesday, sources said, although the cash- strapped developer reached a $1.5 billion deal to settle debt with a Chinese ban.
With liabilities of $305 billion, Evergrande has sparked concerns its woes could spread through Beijing’s financial system and reverberate around the world – a worry that has eased with the Communist China's central bank vowing to protect homebuyer interest.
The company, which has nearly $20 billion in offshore debt, was due on Wednesday to make a $47.5 million bond interest payment on its 9.5% March 2024 dollar bond. It also missed paying a $83.5 million in coupon on another bond last Thursday.
Two people familiar with the matter, who declined to be named due to the sensitivity of the matter, said at least some of the holders of the 2024 bonds had received no information from Evergrande about the payment on Wednesday.
It was not immediately clear if the payment could still be made during U.S. business hours.
A spokesperson for Evergrande did not have any immediate comment. Media were unable to determine whether Evergrande had told any of the bondholders what it plans to do about Wednesday’s coupon payment.
Evergrande’s silence on its offshore payment obligations since the missed payment last week has left global investors wondering if they will have to swallow large losses when 30-day grace periods end for coupons due on Sept. 23 and Sept. 29.