China Evergrande has dodged an immediate default after securing a payment extension for a domestic bond.
China Evergrande will extend redemption and coupon payments for a 4.5 billion yuan ($157 million) 6.98 percent January 2023 bond, following a vote by debt holders yesterday.
72.3 percent of voting bondholders approved Evergrande’s proposal to shift the deadline by six months as well as the right to sell back to the issuer on January 8.
Ongoing Crisis
China continues to face headwinds from onshore and offshore liabilities in the broader property market, estimated by the World Bank to be equivalent to 30 percent of the country’s GDP.
Developers elsewhere are also making moves to withstand debt pressures such as Shimao which is reportedly set to have bondholders vote on a proposed extension on payments for two asset-backed securities and Sunac which is planning to raise $580.1 million from a share sale.
