top of page
  • By The Financial District

Evergrande Seeks Staggered Payments For $19B Offshore Bonds

China Evergrande Group is considering repaying offshore public bondholders owed around $19 billion with cash installments and equity in two of its Hong Kong-listed units, two sources said, as the world's most indebted developer struggles to emerge from its financial crisis, Xie Yu, Julie Zhu, and Clare Jim reported for Reuters.


Photo Insert: Evergrande's entire $22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default after missing payment obligations late last year.



Evergrande's entire $22.7 billion worth of offshore debt including loans and private bonds is deemed to be in default after missing payment obligations late last year. It said in March that it will unveil a preliminary debt restructuring proposal by the end of July.


As part of the proposal, Evergrande is looking to repay offshore creditors the principal and interest by turning them into new bonds, which will then be repaid in installments over a period of seven to 10 years, said one of the sources.



Offshore creditors also will be allowed to swap a portion of their debt into stakes in the developer's Hong Kong-listed property services unit, Evergrande Property Services Group Ltd., and electric vehicle maker China Evergrande New Energy Vehicle Group Ltd., said the two sources.


The first source said up to 20% of the offshore debt can be swapped into equities of those two units. The restructuring proposals are, however, at an early stage and are subject to change, the source added.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

Evergrande, once China's top-selling developer, set up a risk management committee in December made up mostly of members from state enterprises, as the Guangdong provincial government is leading the restructuring.


Evergrande and the Guangdong provincial government did not respond to Reuters' request for comment. Investment bank Moelis & Co declined to comment, while law firm Kirkland & Ellis did not respond. Moelis and Kirkland are advisers to a group of Evergrande offshore bondholders.



WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic



Optimize asset flow management and real-time inventory visibility with RFID tracking devices and custom cloud solutions.
Sweetmat disinfection mat

bottom of page