China’s Evergrande shares rise after winning a bond delay with Reuters

© Reuters. PHOTOS: The company’s logo is displayed at the headquarters of China Evergrande Group in Shenzhen, Guangdong Province, China September 26, 2021. REUTERS / Aly Song / File Photo

HONG KONG (Reuters) – China’s Evergrande Group rose to prominence on Friday after the world’s largest debt collector received the necessary approval from bond holders to delay payment on one of its bonds as many manufacturers rushed to avoid collateral.

Fighting $ 300 billion in debt, plus $ 19 billion in global bonds that seem to have no time to repay last month, Evergrande is trying to avoid technical instability that could jeopardize its political reforms.

The company agreed with the owners of the bond on Thursday to delay the exchange and pay off coupons of the 4.5 billion yuan ($ 707.52 million) bond which was due in January. 8 by 6 months.

“The approval is expected; the creditors will not want to leave Evergrande now because they expect the problem to be resolved,” said Kington Lin, chief executive of the Asset Management Department at Canfield Securities Limited.

By 0330 GMT, Evergrande shares rose 1.2%, against the 0.2% decline in the Mainland Properties Index. China Evergrande New Energy Vehicle Group Limited has changed to + 8.1%.

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