Jakarta, CNBC Indonesia – Chinese property companies with ‘mountain’ debts again make There was a big ruckus in the bond market on Tuesday (12/10), after Evergrande Group again missed bond payments for the third time in less than a month.
In addition, many other property developers are also facing payment deadlines before the end of the year, the fate of Evergrande is looking increasingly bleak. This sparked fears that the pressure had a much broader, serious impact.
Reported by Reuters, Evergrande bondholders who are tired of waiting have yet to receive coupon payments worth nearly US$ 150 million or equivalent to Rp. 2.14 trillion (exchange rate of Rp. 14,300/US$) which matured on Monday (11/10). although this is not surprising news after the company missed two other payments in recent weeks.
Evergrande, which has debts reaching US$ 300 billion (Rp 4,290 trillion) of which nearly US$ 20 billion (Rp 286 trillion) is in foreign debt, has missed its first payment of US$ 47.5 million (Rp 679 billion) of bond interest on September 23 for the 9.5% dollar bond March 2024.
Furthermore, the company again missed coupon payments of US$ 83.5 million (Rp 1.19 trillion) on other bonds a week later, last September 30.
In total, to date the Chinese property giant has missed payments of up to US$281 million (Rp 4.02 trillion) on its foreign debt securities, and still has other obligations of US$ 573 million (Rp 8.19 trillion) that will fall. before the end of this year.
The company has a grace period (grace period) 30 days to pay off any outstanding coupon payments, according to the bond offering prospectus, which means default formally looks like it will happen next week.
Since late August Evergrande has acknowledged that the company will face default (default) if it does not attract new investors or sell assets.
Last week, trading in the shares of Evergrande and its property management unit was suspended by the stock exchange authorities, pending the outcome of a ‘major transaction.’
Several Chinese media have reported that developer Hopson Development Holding, whose shares are also suspended, will acquire a majority stake in Evergrande Property Services, which has a market value of US$7.1 billion. Evergrande owns 61% of the Evergrande Property.
Evergrande New Energy Vehicle Group, the group’s car business, also ran out of cash, but its shares jumped as much as 15.7% in Hong Kong on Tuesday after officials insisted the company would still start mass production next year.
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