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China debt crunch

Evergrande tries to quell debt doubts with early bond repayment

China developer announces $1.45bn redemption after rating downgrade

Investors have been selling Evergrande shares since the end of May, after some of the company's affiliates missed payments.   © Reuters

HONG KONG -- China Evergrande Group, the world's most indebted property developer, has arranged to use $1.75 billion of its own funds to redeem offshore bonds maturing on Monday and to meet interest on all its other outstanding dollar notes, the company said on Thursday.

The developer, which is trying to quell mounting concerns over its financial health, said in a statement that it will repay $1.45 billion for the maturing bonds and remit the rest into a repayment account for interest payable on its dollar bonds. It also said it does not have any further domestic and foreign public bonds due before March.

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