China Vanke raises almost US$500 million to help repay offshore debt in first Hong Kong stock sale since June 2020

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China Vanke, the country’s second-biggest developer by sales, took advantage of a market rally in Hong Kong over the past four months to raise fresh capital from outside investors to ease a cash crunch and trim debt.

The developer collected HK$3.915 billion (US$499 million) by selling 300 million new Hong Kong-listed shares at HK$13.05 apiece, according to an exchange filing on Thursday.

The placement, equivalent to 13.1 per cent of its enlarged Hong Kong-listed shares, was priced at a 6.1 per cent discount to the market.
Citic Securities and Citigroup were the placing agents.

China Vanke intends to use 60 per cent of the proceeds to repay its offshore borrowings and the balance to replenish its working capital, it added in the filing.

About 23 per cent of the firm’s interest-bearing liabilities of 280 billion yuan (US$40.7 billion) at end-June 2022 was denominated in foreign currencies,Β according to its interim report.

Source: SCMP

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