BEIJING, Sept. 19 (Reuters) – Cash-strapped developer China Evergrande Group (3333.HK) has started reimbursing investors for its wealth management products with real estate, a unit of its main Hengda unit said. Real Estate Group Co Ltd.
Evergrande, with liabilities of more than $ 300 billion, is in the grip of a liquidity crunch that has caused it to raise funds to pay its many lenders and suppliers. He has a bond interest payment of $ 83.5 million due Thursday.
The company said in a WeChat article dated Saturday that investors interested in buying back wealth management products for physical assets should contact their investment consultants or visit local offices.
Financial media Caixin reported on Sunday that around 40 billion yuan ($ 6 billion) of Evergrande wealth management products are in circulation. These products are generally held by individual investors.
Payment methods and specific details are subject to local conditions, a customer service representative told Reuters on Sunday.
According to a proposal seen earlier by Reuters that Evergrande has not confirmed, investors in wealth management products can choose from discounted apartments, offices, retail spaces or parking lots for reimbursement.
Earlier this month, a stock market filing showed that Evergrande had paid off 219.5 million yuan in overdue debts owed to supplier Skshu Paint Co Ltd (603737.SS) in the form of apartments in three real estate projects. unfinished.
On September 10, Evergrande committed to repay all of its mature wealth management products as soon as possible.
($ 1 = 6.4655 yuan Chinese renminbi)
Reporting by Aishwarya Nair in Bengaluru and Min Zhang and Tony Munroe in Beijing; Editing by William Mallard
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