Markets are troubled by where any liability might lie in the event that the offshore bond payments are not made. The Nikkei and Sensex were in positive territory. Of its US-denominated debt, around US$7.4bn is estimated to be held by overseas investors, including the likes of Ashmore Group ( LSE:ASHM) ( LSE:ASHM), Credit Suisse ( NYSE:CS.), Allianz and BlackRock.Īsian markets were mixed on Friday, with Hong Kong’s Hang Seng index 1.2% in the red and Shanghai’s benchmark down 0.8%.
The company also has another US$47.5mln bond interest payment due next week.Įvergrande's shares were trading over 12% lower in Hong Kong on Friday, wiping out most of the 17% gains made the previous day when it agreed to make payments on the coupon due for its onshore, Yuan bonds, of just under US$36mln.
The most indebted property group in the world was due to pay a US$83.5mln coupon on its offshore bond by noon Friday Hong Kong time, according to Reuters.Įvergrande, which owes well over $300bn, has not made a statement on the repayment but has a 30-day grace period before it would be in default. Bond investors in Chinese property giant Evergrande’s dollar-denominated bonds have been left in the dark as an interest payment became overdue last night.
