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Evergrande Faces Dollar Bond Coupons After Recent Default

  • Builder has $255 million of interest due Tuesday on two notes
  • Company was deemed a defaulter after not paying other coupons
Apartment buildings at a China Evergrande Group development in Qidong, Jiangsu province, China.

Apartment buildings at a China Evergrande Group development in Qidong, Jiangsu province, China.

Photographer: Qilai Shen/Bloomberg
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China Evergrande Group has two more dollar-bond coupon payments due Tuesday, interest that investors aren’t expecting will be paid after the property giant failed to do so on other debt. 

The embattled firm has $50.4 million of interest due on a 7.5% 2023 bond and another $204.8 million tied to an 8.75% 2025 note, according to Bloomberg-compiled data. Evergrande has a 30-day grace period to deliver the payments before a default can be declared, according to a bond issuance document seen by Bloomberg News. That would begin Wednesday if payments aren’t made. The company had no immediate comment.