China: Evergrande announces an offer to buy back its debt by international creditors
A cleaner sweeps the floor near a map showing Evergrande's development projects in China on a wall in Beijing, 2021 (illustration photo). AP - Andy Wong
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The debt restructuring plan of the former number one real estate in China, Evergrande, has been approved by its creditors. A decisive step forward for the group, on the verge of bankruptcy, strangled by a massive debt of nearly 300 billion dollars.
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The Chinese real estate giant Evergrande has just announced an offer to buy back its debt by a group of international creditors, including the asset manager BlackRock, the Swiss bank UBS and the insurer Allianz.
Evergrande has agreed to exchange the payment of its debt for new bonds, and especially a stake in its prestigious electric car subsidiary.
Objective: to maintain the operation of the activity, and deliver the goods to customers. Even though the group has resumed work on nearly 700 construction sites, many projects are still at a standstill, which is angering homeowners waiting for their homes.
With the announcement of this restructuring plan, Evergrande is trying to reassure, because its collapse would have disastrous consequences for the Chinese economy. It is urgent. In the wake of the giant, other promoters, small or large, could waver.
China's real estate sector alone accounts for a quarter of its Gross Domestic Product.
► Read also China: the automotive branch of the Evergrande group in turmoil
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- China
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