China Evergrande makes $83.5 million bond interest payment

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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