China Evergrande Group’s main unit said on Wednesday it would make a coupon payment on its domestic bonds on September 23, offering some relief to jittery markets that had been on edge over fears that a default of China’s No. 2 developer could ripple through the global financial system.
Hengda Real Estate Group said in a statement it would make the coupon payment on its Shenzhen-traded 5.8% September 2025 bond on time on September 23.
The announcement comes as Evergrande, once the country’s top-selling developer, inches closer to a key deadline for an interest payment on a dollar bond, with financial markets tense even as investors and analysts played down the threat of its troubles becoming the country’s “Lehman moment.”
Hengda Real Estate’s coupon payment totals 232 million yuan ($US35.88 million), according to Refinitiv data.