HONG KONG (Reuters) – China’s most indebted property developer Evergrande Group plans to repay its $1.47 billion offshore bond maturing next Monday this week, ahead of schedule, a source close to Evergrande said.
In recent weeks some of the bonds of Evergrande and its subsidiaries have sold off amid rising investor concerns over the developer’s ability to make timely payments, pushing the yields on two separate 5.8% 2025 onshore bonds to above 29.5% from around 11.5% earlier in June, according to Refinitiv.
Evergrande declined to comment whether it would repay the bond early, but it said it had sufficient funds to repay the bonds due next Monday.
Earlier this month, Evergrande said it was arranging payment for some of its project companies’ commercial paper that had not been repaid on time.
Reporting by Clare Jim; Additional reporting by Andrew Galbraith in Shanghai; Editing by Sumeet Chatterjee