(Bloomberg) -- China Evergrande Group’s main onshore unit has remit funds to pay interest due Tuesday on a yuan bond, Reuters reported, citing four people with knowledge of the matter.
The coupon on Hengda Real Estate Group’s 5.8% 2025 local bond is 121.8 million yuan ($19 million), according to data compiled by Bloomberg.
Evergrande didn’t immediately respond to a request seeking comment.
The reported move comes after Evergrande missed initial interest payment deadlines on several dollar bonds since last month. The company has a 30-day grace period before a coupon payment miss for any of those dollar notes would constitute a default.
While Chinese central bank officials have recently described the developer’s risks as controllable, investors continue to be on the lookout for signs that its crisis could spread and affect other developers and banks. A recent surprise default by Fantasia Holdings Group Co. had spurred a selloff in the offshore debt market, sending yields on Chinese dollar junk bonds to the highest in about a decade.
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