The Other Evergrande Bond Issuers

The troubled real estate developer has been issuing bonds through its listed entity, as well as through subsidiaries. What’s the real Evergrande representation in portfolios?  

Kate Lin 24 September, 2021 | 9:12AM
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China Evergrande Group Logo

It’s common for conglomerates to raise debt funding via multiple subsidiaries or special purpose vehicles. Often, these have different names. The beleaguered China Evergrande Group (03333) is no exception. What are some of the issuers believed to be connected to Evergrande? And who owns the bonds? 

One of the issuers is Hengda Real Estate. According to Evergrande’s annual report, Evergrande owns close to 60% of the onshore subsidiary, Hengda Real Estate. The firm is a Shenzhen-based unit that has issued Renminbi-denominated bonds. The coupon payment due on Wednesday came from the five-year bond issued by Hengda with an RMB 4 billion principal value, which is due in September 2025.  

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About Author

Kate Lin  is a Data Journalist for Morningstar Asia, and is based in Hong Kong