China Evergrande suffered a recent setback albeit temporary, after authorities in Shaoyang, Hubei province said that “sales at two of Evergrande’s projects had been halted because of a shortage of funds in presales accounts”, as per FT. As the halt was only temporary, sales were resumed on Tuesday afternoon. The developer has been in the news regarding its financial position with its dollar bonds hammered since June. As per sources, Evergrande was considering an IPO for its bottled water business, Evergrande Spring where it holds a 49% stake, in a bid to seek new sources of funding. The unit’s products are available in more than 30 provinces and cities across China, as well as over 10 countries/regions in the nation’s Belt and Road Initiative.
Separately, a report by Cailian suggests that Evergrande wired $352mn into its bond repayment account to pay interest on four of its dollar bonds – 11.5% October 2022s, 11.5% January 2023s, 12% October 2023s, 12% January 2024s. Evergrande’s media representatives did not respond to inquiries.
Evergrande’s bonds are lower again – its 11.5% 2022s are down 1.1 points to 64.4 and its 7.5% 2023s are down 1 point to 60.75.
