![]() ![]() ![]() Quarterly dollar bond repayments will almost double to $19.8 billion in the first quarter and $18.5 billion in the second.Įasing measures such as the ability to sell domestic bonds are unlikely to help Evergrande refinance as there would be no demand for its notes, CGS-CIMB Securities said on Monday.Įvergrande's inability to sell projects - with almost zero November sales - also makes short-term debt payments "highly unlikely", the brokerage said. Still, the government may have to significantly step up policy-easing measures in the spring to prevent a sharp downturn in the property sector as repayment pressures intensify, Japanese investment bank Nomura said in a report on Sunday. To stem turmoil, regulators since October have urged banks to relax lending for developers' normal financing needs and allowed more real estate firms to sell domestic bonds. The firm is just one of a number of developers starved of liquidity due to regulatory curbs on borrowing, prompting offshore debt defaults, credit-rating downgrades and sell-offs in developers' shares and bonds. The recent tumble in Evergrande's dollar-denominated bonds accelerated with the March 2022 issue dropping 4.35 cents in the dollar to 27.7 cents, while other issues like the 20 bonds, tumbled to record lows below 20 cents, MarketAxess data showed. Regulators would also likely facilitate debt restructuring discussion with offshore creditors after operations stabilise, the U.S. Morgan Stanley said such a process would involve coordination between authorities to maintain operations of property projects, and negotiation with onshore creditors to ensure financing for project completion. Evergrande's shares tumbled 20% on Monday closing at an all-time low of HK$1.81 after it said late on Friday that creditors had demanded $260 million and that it could not guarantee funds for coupon repayment, prompting authorities to summon its chairman.Īnalysts said authorities' concerted efforts signalled Evergrande has likely already entered a managed debt-asset restructuring process. ![]()
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