By Clarence Leong
Shares of two Chinese property developers rose Thursday morning after they announced fundraising plans to pare down debt.
Hong Kong-listed Jiayuan International Group Ltd. gained 10% to HK$0.39, while Central China Real Estate Ltd. advanced 17% to HK$0.76. Jiayuan shares are still down 85% for the year, whereas Central China Real Estate has lost 19%.
A subsidiary of Jiayuan has agreed to sell a property-development project in China’s Jiangsu province for 879 million yuan ($131.5 million), the company said in a filing Thursday. Jiayuan said the disposal provides a good opportunity to “cash out its initial investment amount” in the project and boost liquidity.
The net proceeds are expected to be used for general working capital and repayment of liabilities, it said.
Central China Real Estate said late Wednesday that its majority shareholder, Joy Bright Investments Ltd., will sell a 29.01% stake for a consideration of 688 million Hong Kong dollars (US$87.7 million), which is expected to be settled in cash. Joy Bright has agreed to subsequently provide a shareholder loan to supplement the developer’s working capital, it said.
Central China Real Estate also plans to issue convertible bonds to raise up to HK$708 million, it said. The 2024 bonds will have a 5% coupon, it added.
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(END) Dow Jones Newswires
June 01, 2022 22:42 ET (02:42 GMT)
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