Evergrande 'paying up' ahead of default deadline - reports

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Evergrande 'paying up' ahead of default deadline - reports

China state-backed media is reporting that Evergrande has wired its $83.52m overdue offshore bond coupon payment today, just ahead of the end of the 30-day grace period tomorrow.

According to Jeffrey Halley, Senior Market Analyst, Asia Pacific, OANDA "given that it is state media, who don't say anything without government approval, I am inclined to believe it. That should give a temporary reprieve to the China financial system contagion fears although I note that Evergrande has another grace period payment due on the 29th of October of $45.17 million."

He added: "Still, if they've managed to scrape together the funds for this one, it is reasonable to surmise that next weeks will also be met. That should provide some relief to China equities, especially Hong Kong, into the end of the week."

If they’ve managed to scrape together the funds for this one, it is reasonable to surmise that next weeks will also be met. That should provide some relief to China equities, especially Hong Kong, into the end of the week.”

Reuters has separately reported today that China Evergrande Group has supplied funds to pay interest on a US dollar bond, according to a person with direct knowledge of the matter.

The person said Evergrande remitted $83.5m to a trustee account at Citibank on Thursday - as earlier reported on Friday by state-backed Securities Times - allowing it to pay all bondholders before the payment grace period ends on 23 Oct.