China’s Evergrande Says It Has ‘Resolved’ a Scheduled Payment

China Evergrande Group’s main unit has said it has “resolved” an interest payment due on one of its domestic bonds on Wednesday, offering some relief to jittery markets that had been on edge over fears that a messy default of China’s No. 2 property developer could ripple through China’s economy and the global financial system, Al Jazeera reported. Evergrande’s main unit, Hengda Real Estate Group, said in a statement on Wednesday it had “resolved” one coupon payment due on Thursday on its Shenzhen-traded 5.8 percent September 2025 bond, but it did not specifiy how much interest it would pay or when. That means uncertainty still surrounds whether Evergrande can pay an $83.5 million dollar bond payment due on Thursday. It has another $47.5 million payment due on September 29 for March 2024 notes. 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.” The large U.S. investment bank went bankrupt in 2008 amidst the subprime mortgage crisis. Read more.

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