China Evergrande makes $83.5 million bond interest payment

The risk appetite is returning to Asia this Friday after China Evergrande makes a payment of $83.5 million in lieu of the bond interest, Reuters reports, citing China’s Securities Times.

The indebted Chinese property development giant made the payment on Thursday, October 21.

Further, Reuters reports, citing a source, that Evergrande wired funds to a trustee account for a bond interest payment, which was due on September 23.

The payment of the bond interest rescued the property giant from a formal default, helping save the face of the Chinese authorities ahead of the country’s biggest annual political event.

Another $45m payment is due on October 29, which was also due late September with a 30-day grace period. 

Market reaction

Investors cheered this encouraging news, as the Asian stocks extended the gains while boosting the riskier currencies across the fx board.

AUD/USD jumped to test daily highs at 0.7490, adding 0.25% on the day. The S&P 500 futures post small losses so far this Friday.