Kunpeng Project
Is Evergrande's dollar bonds secured? The United States collects its debts
After a Hong Kong court ruled that China Evergrande was bankrupt, Evergrande's liabilities were once again in the spotlight.
As a listed company in Hong Kong, China Evergrande's liquidation process has not yet reached an agreement with the mainland in accordance with the relevant laws and regulations of Hong Kong, so the following situations are likely to occur:
In short, the liquidation will be limited to Evergrande's meta-debt, and creditors on the mainland will struggle to be repaid in this liquidation.
Moreover, there are also rumors that this kind of bond belongs to "domestic guarantee and foreign loans", and the United States asked Evergrande for money, but as a result, the domestic banks had to pay compensation, and the result became the responsibility of our people.
Is that really the case? Let's be specific.
As for internal guarantees and external loans, it's a bit boring just from a logical point of view.
For example, Evergrande wants to borrow 100 million US dollars from a foreign bank, but everyone knows that borrowing money from a bank requires a mortgage, and Evergrande has a lot of real estate, so they suggest using a house in Guangzhou as a mortgage.
The foreign banks were happy when they heard it, and if you Evergrande didn't pay it back in the future, Lao Tzu would have to go to Guangzhou to find a place to sell the project.
Don't say whether the court will accept it, even if it really goes to court, your project has been bought or pledged, isn't my 100 million in vain?
Evergrande has real estate, foreign banks also have dollars, and Evergrande is unlikely to borrow dollars, so they have to find a middleman to tie the two sides together.
Who is that bridge? There are only a few banks in Huaxia.
Evergrande made a loan out of their own property, replacing their funds with a letter of guarantee. With this deposit, you will be able to take out a loan from a foreign bank. Why?
Most of Huaxia's banks are state-owned enterprises, and in the eyes of foreigners, this is a symbol of the country, and even if Evergrande defaults on its loans, they can use a letter of guarantee to borrow from Huaxia's banks.
In this case, Evergrande can use domestic bank guarantees to borrow from foreign banks, which is the so-called foreign loans under domestic guarantees.
So, is Evergrande really an internally guaranteed loan? Do you want the banks on the mainland to pay for it?
Why is Evergrande's USD debt not an internally secured loan? The reason is very simple: Evergrande does not have this condition.
Some people may say that Evergrande used to be a real estate giant, why doesn't Evergrande have this ability? The reason is simple.
First of all, in the years of Evergrande's glory, the regulation of real estate has also been continuously tightened.
After the introduction of the "three red lines", real estate developers are short of funds at home and have turned to foreign countries.
Besides, Evergrande has a guarantee, why not use it as a mortgage, but use yuan as a guarantee, isn't this looking for death?
Secondly, the annual interest rate of the US dollar bonds issued by Evergrande is 7.5 percent, with a maximum of 13 percent75 percent, generally more than nine percent. What is this concept?
The interest rate of bonds of banks such as ICBC and Huawei is below 4%, while the interest rate of Evergrande's bonds is two or three times higher than theirs. It's a dangerous thing to do. What do you want to do with such a high interest rate if you ***?
The dollar bonds issued by American developers are also called "junk bonds" because of its high risk, and because it has no collateral, it is just a kind of business reputation, and if it cannot be repaid, then it becomes a piece of "garbage".
Third, this kind of loan can only be applied for by the state and ** enterprises, and it is impossible for a large company like Huawei to obtain a loan. Evergrande is a real estate developer, and it is not among them at all.
If Evergrande's bonds are internally guaranteed loans, it is unfamiliar with the market and misleading investors.
As we said before, Evergrande's bankruptcy is likely to be chased back by foreign creditors, while mainland creditors will be dragged behind.
Does this mean that the mainland's creditors will get nothing? The answer is no.
First, a Hong Kong court liquidated China Evergrande, which specializes in the real estate industry, where land and property are their most valuable assets.
Most of the properties are in Huaxia, and most of them have been seized by the courts, or frozen.
The courts in Huaxia have already begun to act, and even if Hong Kong wants to liquidate, it will not begin until the domestic courts decide, and at that time, no one knows how much property they can leave behind.
Secondly, the most important thing for Evergrande now is to save their lives, according to Evergrande's financial report, they have more than 600 billion contract debts, which are paid to Evergrande by buyers, and Evergrande did not deliver the house, but owed a debt.
What does 600 billion mean? Since most of Evergrande's real estate projects are in third- and fourth-tier cities, according to the calculation of 600,000 yuan per household, there is no ** delivered yet, that is, about one million.
According to the "6 wallets" that were taken out in order to buy a house in previous years, it is very likely that more than 3 million households will be involved in a million houses, and this is not just a problem of the real estate market.
Therefore, to save a life, we must find a way, and if we want to find a way, Evergrande's remaining assets and resources will definitely be transferred to this side, and those who want to repay the yuan debt will probably have to wait a little longer.