HomeNewsEvergrande Will Convert Its Business Into New Energy Vehicles

Evergrande Will Convert Its Business Into New Energy Vehicles

The indebted Chinese real estate giant Evergrande is looking to convert itself into the new energy vehicle (NEV) sector in about 10 years, according to local Chinese press.

In addition to this strategic change, the founder of the company, Xu Jiayin, also seeks that the conglomerate can guarantee the construction of the properties that it has pending completion, according to the Chinese financial daily Securities Times in information collected by EFE .

The newspaper adds that the company’s priority is to “deliver finished buildings” and resume production and real estate sales.

The group’s shares rose 4.3% on the Hong Kong Stock Exchange on Friday due to information that indicates that the company would have paid the interest on an offshore bond just one day before officially incurring in default.

The securities thus recovered part of the lost value – more than 12% – in Thursday’s session, the first in which it traded after more than two weeks of suspension due to the already frustrated negotiation of the sale of its real estate management subsidiary, Evergrande Property Services, to the developer Hopson Development.

Deposit 83.5 million interest
According to Securities Times , Evergrande on Friday deposited the 83.5 million dollars of interest (71.6 million euros) in an account of the US bank Citibank, which acts as trustee of these bonds.

The Chinese real estate company should have made that payment, corresponding to bonds maturing in March 2022, on September 23, the date on which it entered a 30-day extension before it was considered that it had definitively defaulted on its obligations.

Since then, it has entered into extensions for another four packages of ‘offshore’ bonds whose interests owed total about 193 million dollars (165 million euros).

In the case of onshore bonds, that is, those priced in yuan through Chinese markets such as the Shenzhen Stock Exchange, Evergrande has made at least one interest payment and has reached an agreement to pay the amounts owed for another batch.

According to the data provided by the company, at the end of the first semester its total liabilities exceeded 300,000 million dollars (257,580 million euros), of which some 37,000 million dollars (31,768 million euros) correspond to loans to be repaid before June 2022.

Ron Willshttps://wideworldmag.co.uk
Ron Wills is Based in Cape Town and loves playing football from the young age, He has covered All the news sections in WideWorldMag and have been the best editor, He wrote his first NHL story in the 2013 and covered his first playoff series, As a Journalist in WideWorldMag Ron has over 8 years of Experience.
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