By Gina Lee
Investing.com – China Evergrande Group's (HK:3333) stocks got a boost after it cleared more overdue payments. Investors breathed a sigh of relief as the embattled developer once again averted a default.
China Evergrande’s Hong Kong shares jumped 5.91% to HK$2.51 ($0.32) by 11:31 PM ET (4:31 AM GMT) after the developer paid the overdue interest on three dollar bonds. They climbed up to $2.56 earlier in the session.
The bonds are a 9.5% security due 2022, 10% note due 2023, and a 10.5% bond due 2024.
Customers from Clearstream, an international clearing firm, received the interest payments, the company said. Two investors, who hold two of the notes, confirmed that they have received the payments, according to media reports.
Investors had been holding their breath to see if China Evergrande would be able to make the payments, totaling $148.1 million, before the end of a 30-day grace period on Wednesday. The developer missed the initial deadline, which was in October.
The developer’s dollar notes have climbed up from record lows in recent weeks as distressed debt buyers have expressed interest. However, the levels still indicate that an eventual restructuring is highly likely.
However, debt woes are far from over for China Evergrande, the world’s most indebted developer. It still has more than $300 billion in liabilities, $19 billion of which are international market bonds.
As concerns remain that the debt could affect other capital markets, Chinese authorities are pressuring China Evergrande founder Hui Ka Yan to help repay the debt with his personal funds.
The company has so far not defaulted on any publicly traded dollar bonds.