Evergrande, Asia’s biggest junk bond issuer, is so entangled with China’s broader economy that its fate has kept global stock and bond markets on tenterhooks as late debt payments could trigger so-called cross-defaults. Many financial institutions have exposure to Evergrande through direct loans and indirect holdings, while any defaults will also trigger sell-offs in the high-yield credit market. Evergrande did not immediately respond to questions about its deal or its intentions. Evergrande, which epitomised the borrow-to-build business model and was once China’s top-selling developer, also has a $47.5 million dollar-bond interest payment due next week. Only some $20 billion of $305 billion outstanding debts is owed offshore, according to Refinitiv data.

Source: MetroXpress September 21, 2021 23:03 UTC