SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Evergrande on Friday revised plans to repay investors in its wealth management products (WMPs). It said that each investor in its WMPs could expect to receive RMB 8,000 ($1,257) per month as principal payment for three months starting December 2021, irrespective of when the investment matures. It added that it will “actively raise funds”, and update the repayment plan in late-March. This comes after some of its WMP investors refused to accept Evergrande’s plan to provide payment with discounted apartments, offices, stores and parking units. Previously, Evergrande had not mentioned any amount and agreed to repay 10% of the investment by the end of the December when the WMPs matured.

Separately, the developer missed coupon payments totaling $255mn on Tuesday, December  28, 2021 on its June 2023s and 2025s. Both the payments have a 30-day grace period. Thomas Kwok, head of equity business of CHIEF Securities in Hong Kong said that the market confidence in Evergrande and the sector is weak, as there could be more defaults with many bonds due in January.

Evergrande’s dollar bonds continue to trade at distressed levels of 14-16 cents on the dollar.

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