China's Country Garden pays dollar-bond coupons, avoids default

But future payments in doubt as housing market and economy still weak

A development by Country Garden in Nanjing, Jiangsu province. The property company has staved off a default by paying the coupons on two dollar-bonds in time. © Getty Images

ECHO WONG, Nikkei staff writer

September 5, 2023 19:26 JST

HONG KONG -- Chinese real estate developer Country Garden Holdings made coupon payments on two U.S. dollar bonds ahead of a 30-day grace period deadline on Tuesday, avoiding a default that would have further pressured the nation's ailing property sector.

The Guangdong-based company paid investors a total of $22.5 million in interest on the two $500 million bonds, according to a person familiar with the matter. Country Garden missed the coupon payments in early August.