This execution triggered conditions under which other financing agreements and bonds worth $ 710 million can be immediately payable if creditors decide to execute them, the company said.
Sinic added that it was in discussions with the lenders and other stakeholders about the repayment agreements. The payment and the last interest payment on the first batch of bonds worth $ 250 million is due on October 18.
The Shanghai-based developer has a total liability of $ 1.01 billion under overseas financing arrangements.
Sinic’s shares have been suspended from trading since September 20, after plummeting nearly 90% that day.
Distrust
China’s high-yield bond markets were suffering again, as fears of a fast-spreading contagion in a sector that
It amounts to 5 trillion dollars and powers a considerable part of the Chinese economy, it continued to devastate confidence.
Some overseas bondholders of China Evergrande Group had not received interest payment by Monday’s Asian time deadline, two people familiar with the matter said.
The firm, once China’s largest real estate developer, has more than $ 300 billion in liabilities that are now at risk.
Other signs of stress included a minor rival, Modern Land, which asked investors to delay a $ 250 million bond payment due on October 25 by three months, in part “to avoid a potential default.” .
Modern Land’s April 2023 bond, with a coupon of 9.8%, plunged more than 25% on the day, to 32.25 cents, according to financial data provider Duration Finance, while shares of the company fell more than 2%.
Kaisa Group, which was the first Chinese real estate company to default in 2015, also saw some of its bonds decline to less than half their face value, while those of R&F Properties and Greenland Holdings, which have Prestigious projects in global cities like London were also widely sold.
“It’s a disastrous day,” said Clarence Tam of Avenue Asset Management in Hong Kong, highlighting how even some supposedly safer “investment grade” companies had now seen 20% of their bonds wiped out.
Caution
JPMorgan analysts also highlighted how international investors are now demanding the highest premium in history to buy or hold Chinese debt rated as junk. “The risk of contagion from Evergrande is now spreading to other issuers and sectors,” they said.
Harbin, capital of the northeastern province of Heilongjiang, has become one of the first Chinese cities to announce measures to support property developers and their projects, which have been shaken by the Evergrande crisis.
The troubled firm and fears of contagion sent shockwaves through global markets and the company has already defaulted on dollar bonds worth a combined $ 131 million that matured on September 23-29.
Advisers to overseas bondholders said Friday they have yet to hear from Evergrande and are also demanding more information about its plan to divest from some companies, concerned about a possible forced sale that will ultimately leave them with less. . Evergrande’s stock trading, as well as its Evergrande Property Services Group unit, has been on hold since October 4, pending an announcement of a major deal.
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