Burdened with an estimated debt of around 260 billion euros, the crisis of the Evergrande group has dominated the world's financial agendas, spreading fears in the main international exchanges.
The face of the real estate boom of the last decades in China, since 1996 that the Evergrande Group sold its dreams of home ownership throughout the country, being present in more than 280 Chinese cities. However, in recent times the group has been suffocated by a series of bond issues worth approximately 260,000 million euros, which not only undermined its credit rating, but also share prices and reputation with a public that had it. as one of the most prosperous companies in China.
Promising interest rates to investors between 7 to 9%, Evergrande now finds itself unable to make the due repayments. And although this Tuesday the Chinese real estate giant said it had reached an agreement with bondholders to avoid defaulting on one of its debts; the truth is that other refunds are due as early as tomorrow, Thursday, and the group has yet to say how it plans to meet them.
In a note sent this week to the Shenzhen Stock Exchange, in southern China, Evergrande announced that one of its affiliates, Hengda Real Estate, had negotiated an interest payment plan on a bond maturing in 2025. According to information provided by Bloomberg, Evergrande was to repay 30.5 million euros of debt owed on Thursday on a 5.8% bond destined for the domestic bond market. However, other refunds are due tomorrow and Evergrande has yet to say how it plans to meet them, raising fears about its (in)ability to meet its commitments this week.
As fears over the future of China's second-largest real estate company thicken, alarms of danger in the face of possible contagion such as happened in the last decade with the collapse of Lehman Brothers are ringing in world markets. And so, for now, all attention is turned to the Chinese Government, which has not yet officially announced whether it intends to intervene to save the private group.
After in October 2017 the company's shares reached their historical maximum on the stock exchange, their value dropped 92.77%. Only in the last 12 months the fall was more than 88% and, marking the beginning of this week, at dawn this Monday its fall was another 10%.