China Evergrande's EV firm attracts investors to raise $3.4 billion

Property giant China Evergrande's Hong-Kong listed electric vehicles firm said on Sunday it would bring in six new investors to raise HK$26 billion ($3.4 billion) to fund technology research and repay debt.

Representational photo
Representational photo

China Evergrande New Energy Vehicle Ltd will issue 952.4 million shares at HK$27.3 each to the new investors who include China Gas Chairman Liu Minghui and Chan Hoi-wan, spouse of Joseph Lau who is a Chinese Estate shareholder, the firm said.

Also Read : China to cut new energy vehicle subsidies by 20% next year

The price offers a 9% discount to Friday's close of HK$29.90, the company said in a filing to the Hong Kong bourse.

The other four new investors are Cosmic Success Holdings Ltd, Upper World Ltd, Heyirong International Trade Co. Ltd and Greenwoods Global Investment Ltd.

China Evergrande, the country's most indebted property developer, has been scrambling for cash as Beijing plans new debt-ratio caps to tackle what it considers excessive borrowing in the real estate development sector.

Also Read : Electric car maker BYD raises $3.9 billion in upsized sale

The company's balance of interest-bearing indebtedness was 716.5 billion yuan ($110.6 billion) at the end of 2020, down 157.8 billion yuan from March. The developer said it targets to reduce the balance by a further 150 billion yuan this year.

First Published Date: 24 Jan 2021, 17:54 PM IST
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