Evergrande begins repaying wealth product investors with property

The firm has begun repaying investors in its wealth management products with real estate

Evergrande has nearly 800 unfinished projects across China

Evergrande has nearly 800 unfinished projects across China

BEIJING (Reuters) -Cash-strapped developer China Evergrande Group has begun repaying investors in its wealth management products with real estate, a unit of its main Hengda Real Estate Group Co Ltd unit said.
Evergrande, with over $300 billion in liabilities, is in the throes of a liquidity crisis https://www.reuters.com/business/exclusive-china-evergrandes-lenders-weigh-up-loan-losses-rolling-over-credit-2021-09-17 that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of $83.5 million due on Thursday.
The company said in a WeChat post dated Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices.
Financial news outlet Caixin reported on Sunday that an estimated 40 billion yuan ($6 billion) in Evergrande wealth management products are outstanding. Such products are typically held by retail investors.
Specific payment methods and details are subject to local conditions, a customer service representative told Reuters on Sunday.
According to a proposal seen earlier by Reuters that Evergrande did not confirm, wealth management product investors can choose from discounted apartments, office, retail space or car parks for repayment.
Earlier this month, a stock exchange filing showed that Evergrande had repaid https://www.reuters.com/business/fitch-downgrades-china-evergrande-sees-probable-default-2021-09-08 219.5 million yuan in overdue debts due to supplier Skshu Paint Co Ltd in the form of apartments in three unfinished property projects.
On Sept. 10, Evergrande had vowed to repay https://www.reuters.com/article/china-evergrande-debt-idUSL1N2QC0Q9 all of its matured wealth management products as soon as possible.
($1 = 6.4655 Chinese yuan renminbi)
(Reporting by Aishwarya Nair in Bengaluru and Min Zhang and Tony Munroe in Beijing; Editing by William Mallard)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sep 19 2021 | 3:00 PM IST

Explore News