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China’s Evergrande Group seeks escape from mounting debt worries
This appeared in The Millennial Source
The property developer is aiming to stage an IPO in Hong Kong to raise as much as US$2 billion, or about 13 billion Chinese yuan, to ease its debt worries.
One of China’s largest property developers, the Evergrande Real Estate Group, also holds the ominous distinction of being the most indebted developer in the world.
In early November, the company saw its four-year-long effort to reorganize its business to appease investors and raise extra capital fall through.
Now Evergrande, which in August reportedly warned Chinese authorities of a cash crunch in its business that could pose systemic risks, is seeking new opportunities to escape its mounting debt.
The property developer is aiming to stage an IPO in Hong Kong to raise as much as US$2 billion, or about 13 billion Chinese yuan, to ease its debt worries.
With the sale of its properties throughout China offered at a discount in October and requests for government support in August, Evergrande appears to be exhausting all available avenues to escape its rising debt, which is increasingly unnerving investors and destroying confidence.
