Evergrande payment eases market fears

Global markets rallied yesterday after Evergrande pledged to make key interest payments on its $300bn debt. The assurance offered some relief to jittery markets, concerned that the indebted developer’s troubles could bring on a credit crunch in China and knock down dominos in other markets. Evergrande said that it would pay the interest due on its domestic bonds, which mature in 2025, on time. The amount is estimated to be about £26.3m. Selling, however, has picked up in the Asian dollar-debt markets. Evergrande has said nothing about a further $83.5m due on bonds sold to overseas investors, or the $47.5m due next week. S&P Global, the ratings agency, has said that “a default is likely”. The Times (£) The FT (£) To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews