The first test for Evergrande’s debt crisis comes this week

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• 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.
  

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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