China Evergrande makes $83.5 million bond interest payment
|The risk appetite is returning to Asia this Friday after China Evergrande makes a payment of $83.5 million in lieu of the bond interest, Reuters reports, citing China’s Securities Times.
The indebted Chinese property development giant made the payment on Thursday, October 21.
Further, Reuters reports, citing a source, that Evergrande wired funds to a trustee account for a bond interest payment, which was due on September 23.
The payment of the bond interest rescued the property giant from a formal default, helping save the face of the Chinese authorities ahead of the country’s biggest annual political event.
Another $45m payment is due on October 29, which was also due late September with a 30-day grace period.
Market reaction
Investors cheered this encouraging news, as the Asian stocks extended the gains while boosting the riskier currencies across the fx board.
AUD/USD jumped to test daily highs at 0.7490, adding 0.25% on the day. The S&P 500 futures post small losses so far this Friday.
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