Residences at China Evergrande Group's Life in Venice real property and tourism development in Qidong province, China on Tuesday, September 21, 2021
Evergrande, a Chinese developer, announced that it would be selling a stake of Shengjing Bank worth $1.5 billion (9.99 bln yuan), to a state-owned asset manager firm.
Property giant, which has more than $300 billion of debt, is struggling to raise funds. It faces a Thursday deadline for $47.5 million in bond interest payments. The bankrupt real estate company owes money to suppliers and banks.
Evergrande filed a Hong Kong exchange filing on Wednesday morning stating that it had entered into an agreement to sell 1.75 billion shares in Shengjing Bank, to the Shenyang Shengjing Finance Investment Group at 5.70 Yuan per share. These shares represent 19.93% of the bank's issued share capital.
Evergrande had previously sold 1 billion Yuan worth shares in Shengjing Bank.
Evergrande stated in the statement that Shengjing Bank's liquidity problems had already "adversely impacted" it "in a material manner." Evergrande stated that introducing the purchaser to the Shenyang Shengjing Finance Investment Group would "stabilize the operations" of Shengjing Bank.
