Evergrande: Crisis-hit firm strikes China debt deal

The main property unit of Chinese real estate giant Evergrande has said it has struck a deal over a bond interest payment which is due on Thursday.

The amount due for the domestic bond is estimated to be $35.9m (£26.3m).

The announcement will offer some relief to investors concerned over the company's debt crisis.

However, the world's most indebted developer is also due to make a $83.5m interest payment on an overseas bond on Thursday.

In a statement filed with the Shenzen Stock Exchange in mainland China, Hengda Real Estate Group said it had reached an agreement with holders of the onshore bond over the repayment.

However, the statement did not reveal how much interest would be paid or when any payment would be made. The filing also did not mention the offshore bond.

Under agreements with investors, the company has a 30-day grace period before a missed payment on the offshore bond would become a default.

The firm's problems have sent shockwaves around global markets over concerns it may be about to collapse.

Evergrande has been struggling to meet repayments on its debts of more than $300bn.

Earlier in the week, the company started to repay investors in its wealth management business with property as it struggled to find cash to meet its liabilities.

On Monday, Evergrande also reportedly missed interest payments to at least two of its biggest lenders.

Some analysts have cautioned that the failure of such a large and heavily-indebted property developer could have a major impact on the Chinese economy, which could potentially spread to the global financial system.

The Shenzhen Stock Exchange, which was closed on Monday and Tuesday, was around 1% lower in morning trade.

The Hong Kong Stock Exchange is closed on Wednesday for the annual mid-autumn festival.