China’s Evergrande debt crisis

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A surveillance camera is seen near the China Evergrande group logo at the Evergrande Center in Shanghai, China on September 24, 2021. REUTERS / Aly Song

HONG KONG, Oct.22 (Reuters) – China Evergrande Group (3333.HK) has provided funds to pay interest on a dollar bond, a person with direct knowledge of the matter said on Friday, days before a deadline that would have seen the developer plunge into the formal defect. Read more

Here is a timeline of events as the Evergrande debt crisis unfolded:

August 2020

Regulators are meeting with Evergrande and other big developers to introduce caps for three debt ratios in a program dubbed “the three red lines.”

Evergrande sells a $ 3 billion stake in its property management unit ahead of the unit’s IPO. He is asking the Guangdong provincial government to approve a backdoor listing plan in Shenzhen that has been dragging on for four years, saying it could face a cash shortage.

September 2020

Evergrande is offering 30% off properties for one month to boost sales.

October 2020

Evergrande raises $ 555 million in lean secondary stock sale in Hong Kong.

november 2020

Evergrande terminates Shenzhen backdoor listing plan. Some strategic investors agree not to demand reimbursement.

Evergrande Property Services Group (6666.HK) IPO in Hong Kong raises $ 1.8 billion.

January 2021

China Evergrande New Energy Vehicle Group (0708.HK) raises $ 3.4 billion by attracting six new investors.

March 2021

Evergrande sells $ 2.10 billion stake in online real estate and auto market Fangchebao to 17 investors in pre-IPO deal. It aims to reach its three debt ratio ceilings by the end of the year, register Fangchebao early next year and create several units.

June 2021

Evergrande has announced that it will sell a $ 386 million stake in the China Calxon group (000918.SZ).

The developer is arranging HK $ 13.6 billion ($ 1.75 billion) to pay off a maturing bond and interest on the dollar bonds.

Evergrande hits a debt ceiling, reducing interest-bearing debt to about 570 billion yuan from 716.5 billion yuan six months earlier.

July 2021

A court orders the freezing of a bank deposit of 132 million yuan held by Evergrande at the request of China Guangfa Bank (GDDVB.UL). Evergrande says the loan is not due until March and that he plans to take legal action.

Some Hong Kong banks are refusing to grant new loans to buyers of two of Evergrande’s unfinished residential projects.

August 2021

Evergrande agrees to sell stakes in Internet unit HengTen Networks Group (0136.HK) for HK $ 3.25 billion ($ 418 million).

The Guangzhou Intermediate People’s Court is centralizing the prosecution of Evergrande across the country, sources say.

Evergrande says it is in talks to sell stakes in Evergrande New Energy Vehicle and Evergrande Property Services.

State media report that construction has been halted on two Evergrande projects in Kunming, one for late payments.

Hui Ka Yan is stepping down as chairman of the flagship unit Hengda Real Estate Group.

China’s central bank and banking watchdog summon top executives, issuing a rare warning that Evergrande must reduce its debt risk and prioritize stability.

Evergrande warns of liquidity and default risks if it does not resume construction, sell assets and renew loans, as it reports a 29% drop in its net profit year-on-year annual.

September 2021

President Hui promises buyers that Evergrande will complete construction of their homes.

He calls for an extension of interest payments on trust loans to creditors, including CITIC Trust.

Hui is committed to repaying all mature wealth management products from Evergrande as soon as possible. Investors invade the hall of Evergrande’s headquarters in Shenzhen to demand repayment of loans.

Evergrande said online bankruptcy and restructuring speculation was “totally bogus”, but acknowledges “unprecedented difficulties”.

He says he hired financial advisers to review his options, warning of the risks of cross-default in the context of falling real estate sales.

Hui says helping retail investors buy back investment products is a top priority.

Evergrande said it “resolved” a coupon payment on an onshore bond, but then missed payments on September 23 and 29 to pay coupons of $ 131 million.

Chinese Estates Holdings (0127.HK), Evergrande’s second largest shareholder, has announced its intention to pull out. The EV unit warns that it faces an uncertain future unless it receives a quick injection of cash.

Evergrande announced that he would raise 9.99 billion yuan by selling shares of Shengjing Bank (2066.HK).

October 2021

Advisors to some Evergrande dollar bondholders, investment bank Moelis & Co and law firm Kirkland & Ellis, say they want more information and transparency.

Evergrande is missing $ 148 million in coupon payments due October 11.

Hong Kong’s audit regulator said it was investigating Evergrande’s 2020 accounts and PwC’s audit.

Reuters reports that state-owned Yuexiu Property (0123.HK) has pulled out of a proposed $ 1.7 billion deal to buy Evergrande’s head office in Hong Kong.

Evergrande pays an onshore bond coupon of 121.8 million yuan, sources say.

China’s vice premier, central bank, and banking and securities supervisors seek to reassure markets that the ripple effects on the banking system and real estate sector of debt problems Evergrande are controllable.

Evergrande abandons plans to sell a $ 2.6 billion stake in the services unit to rival Hopson Development Holdings (0754.HK).

A defaulting private bond guaranteed by Evergrande, Jumbo Fortune Bond, guarantees an extension of more than three months, reports REDD.

Evergrande is remitting funds for a dollar bond coupon that was due on Sept. 23 to avoid default before the 30-day grace period expires, according to a source.

Reporting by Clare Jim; Editing by Sumeet Chatterjee and William Mallard

Our standards: Thomson Reuters Trust Principles.


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