(Bloomberg) -- China Evergrande Group's main onshore unit has paid 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. Hengda has remitted funds to pay the coupon, according to the report.
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. At least some of those notes have a 30-day grace period before a coupon payment miss 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 property firms 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.
Evergrande's offshore bonds are trading at about 20 cents on the dollar, suggesting investors are betting on default. The stock has plunged more than 80% this year, and has been halted in Hong Kong for the past two weeks.
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