(Reuters) China’s Evergrande Group has made a payment of 121.8 million yuan or $19 million on an onshore bond coupon, which became due on Tuesday.
The group’s unit Hengda Real Estate remitted the funds as concerns continue to mount over potential offshore default by the developer at the end of the week.
Evergrande is reportedly trying to prioritize debt from the domestic market over higher stakes in the country’s financial sector.
Another Evergrande bond due in March 2023 is almost running into default if the developer will not pay it within the 30-day grace period. The coupon payment became due on September 23.
The group has failed to honor a series of bond payments, especially the high-yield bonds, to the disappointment of the global market.
The concerns come even as Evergrande’s quest to sell a 51% stake in its property service unit was halted, pending approval by Guangdong provincial government.
China’s high yield debt index spread eased to about 1,484 on Tuesday from the highs recorded last week after some developers made coupon payments.
Bonds issued by some Chinese developers have gained after the People’s Bank of China said that it could control the impact of the Evergrande debt crisis and that the economic outlook was good.
EGRNF is up +6.44%.
