09-21-2021, 04:46 PM
- Evergrande is due to pay out interest worth $83 million on a 5-year, U.S.-dollar denominated bond, with an initial issue size of around $2 billion. Another interest payment on a 7-year dollar bond is due next Wednesday, on Sept. 29.
- Analysts and market watchers largely expect that Evergrande to miss the interest payment on Thursday.
- If these initial defaults happen, institutional and other foreign investors will likely be more affected compared to domestic investors in China, analysts say.
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The first test for Evergrande’s debt crisis comes this week — investors will be watching to see if the embattled Chinese property developer is able to pay out its interest due on a bond, or default on it.
The firm is due to pay interest worth $83 million on Thursday, according to data from S&P Global Ratings.
Evergrande’s 5-year, U.S.-dollar denominated bond, had an initial issue size of around $2 billion, according to market data provider Refinitiv Eikon – although the price has plummeted now.
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