China Evergrande Group to settle $511 mn trust loan with state help
Real Estate

China Evergrande Group to settle $511 mn trust loan with state help

China Evergrande Group aims to return land set aside for collateral for a $510.73 million trust loan from CITIC Trust Co to the Guangzhou government.

The agreement centres around a $510.73 million trust loan that CITIC Trust issued to Evergrande using funds raised from investors. Under the loan resolution, CITIC will return the land utilised as collateral to Evergrande, the world's most indebted property developer, who will then give it to the Guangzhou city government to put up for sale.

State-owned Guangzhou City Construction Investment group will work as a guarantor of the loan, and CITIC will repay the principal amount to its investors within two years utilising funds from the Guangzhou city government.

The plan is still pending clearance from the investors of the trust loan. If successfully executed, this model of local government and creditors working together to settle Evergrande's debt repayment issue could be replicated for other trust loans, and more state-owned city investment companies may become engaged in the company's debt restructuring process. Trust firms, which pool money from wealthy investors, are a significant source of funding for Evergrande and other property developers in China. A wave of defaults in the property sector has discouraged investors and while state intervention has quelled market concern over an uncontrolled collapse of China Evergrande, investors are still in the dark over whether they will recoup their money.

Evergrande, with more than $300 billion in liabilities, defaulted on some overseas bond payments in December and has struggled to repay suppliers and creditors and achieve projects and houses.

Image Source

Also read: China braces for Evergrande Group downfall: Wall Street Journal report

China Evergrande Group aims to return land set aside for collateral for a $510.73 million trust loan from CITIC Trust Co to the Guangzhou government. The agreement centres around a $510.73 million trust loan that CITIC Trust issued to Evergrande using funds raised from investors. Under the loan resolution, CITIC will return the land utilised as collateral to Evergrande, the world's most indebted property developer, who will then give it to the Guangzhou city government to put up for sale. State-owned Guangzhou City Construction Investment group will work as a guarantor of the loan, and CITIC will repay the principal amount to its investors within two years utilising funds from the Guangzhou city government. The plan is still pending clearance from the investors of the trust loan. If successfully executed, this model of local government and creditors working together to settle Evergrande's debt repayment issue could be replicated for other trust loans, and more state-owned city investment companies may become engaged in the company's debt restructuring process. Trust firms, which pool money from wealthy investors, are a significant source of funding for Evergrande and other property developers in China. A wave of defaults in the property sector has discouraged investors and while state intervention has quelled market concern over an uncontrolled collapse of China Evergrande, investors are still in the dark over whether they will recoup their money. Evergrande, with more than $300 billion in liabilities, defaulted on some overseas bond payments in December and has struggled to repay suppliers and creditors and achieve projects and houses. Image Source Also read: China braces for Evergrande Group downfall: Wall Street Journal report

Next Story
Infrastructure Urban

Coal Ministry Achieves Milestones under Special Campaign 5.0

The Ministry of Coal and its Public Sector Undertakings (PSUs) have achieved notable milestones under the Special Campaign 5.0, focusing on cleanliness, operational efficiency, and sustainability across the coal sector. During the implementation phase from 2–31 October 2025, over 1,205 sites were cleaned, covering 68,04,087 sq ft, nearing the target of 82,51,511 sq ft. Scrap disposal of 5,813 MT against a target of 8,678 MT generated Rs 228.7 million in revenue. In addition, 1,11,248 physical and 30,331 electronic files were reviewed, with 74,123 weeded out or closed. Key initiatives showc..

Next Story
Infrastructure Energy

Vesting Orders Issued for Three Coal Blocks under Commercial Auctions

The Ministry of Coal’s Nominated Authority has issued vesting orders for three coal blocks under commercial coal block auctions on 23 October 2025. The Coal Mine Development and Production Agreements (CMDPAs) for these mines were earlier signed on 21 August 2025. The three blocks include Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Of these, two are partially explored while one is fully explored, with a combined peak rated capacity of around 1 MTPA and geological reserves of approximately 1,484.41 million tonnes. These mines are expected to generate annual revenue of abou..

Next Story
Infrastructure Urban

TEC, IIT-Hyderabad Partner to Boost 6G and Telecom Standards

The Telecommunication Engineering Centre (TEC), technical arm of the Department of Telecommunications (DoT), has signed a Memorandum of Understanding (MoU) with the Indian Institute of Technology Hyderabad (IIT Hyderabad) for joint research and technical collaboration in advanced telecom technologies and standardisation. The partnership focuses on developing India-specific standards and test frameworks for next-generation networks, including 6G, Artificial Intelligence (AI), and Non-Terrestrial Networks (NTNs). It also aims to enhance India’s participation in international standardisation f..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?