As the person familiar with the matter told Reuters on Friday, the company is said to have transferred $ 83.5 million in coupon payments to an escrow account with Citibank on Thursday.
The insider confirms a report that appeared on Friday in the state’s financial newspaper, The Securities Times. Accordingly, Evergrande was able to pay off all bondholders before the grace period expired on October 23.
“This is a positive surprise,” said James Wong, portfolio manager at GaoTeng Global Asset Management Ltd, adding that many would have expected a default. The news will boost bondholders’ confidence, Wong said.
The real estate company’s dollar bonds skyrocketed on Friday morning. The company’s shares also rose about 4 percent.