Advanced Theory & Practice of Bonds

IBF Recognized Under FTS - 23-24 February 2022 (Wed-Thu)

Digital Assets in Capital Market

What a Banker Needs to Know - 9 March 2022 (Wed)

China Evergrande missed the 30-day grace period deadline to pay coupons worth $41.9mn and $40.6mn on its 13% 2022s and 13.75% 2023s respectively. Media agencies state some bondholders said that they did not receive the coupons on the bonds. Rating agency S&P’s analysts noted that default looked inevitable for Evergrande. Besides, Evergrande also received a demand related to guarantees on $260mn of debt last week. FT notes that the above combined amounts which total $343mn was the equivalent amount of shares that Chairman Hui Ka Yan sold in late November. However, Evergrande has not said if Hui Ka Yan would use the proceeds to help pay down debts.

Evergrande in an HKEX filing mentioned that its board had resolved to establish a Risk Management Committee comprising senior management of Evergrande, senior management of leading enterprises and select professionals that include the VP of China Cinda AMC, Chief Capital Officer of Guangzhou Yuexiu Holdings, a Partner of Beijing Zhonglun Law Firm, the Deputy General Manager of Guangdong Holdings and the Compliance Director of Guosen Securities besides Evergrande’s Chairman Hui Ka Yan and CFO Pan Darong. Evergrande noted that while the committee is not a board committee, it will play a key role in mitigating and eliminating future risks of the developer.

Evergrande’s dollar bonds fell over 1 point on Tuesday to trade at 17-19 cents on the dollar, and have slightly recovered today to trade at 18-20 cents on the dollar.

Show Buttons
Hide Buttons