Country Garden to issue 350.6 million shares to pay off loans

The property developer priced their shares at $0.77 apiece.

In the face of a cash crunch, Country Garden plans to sell 350.6 million shares at $0.77 apiece.

The developer expects to complete the subscription on 6 September.

In a bourse filing, Country Garden will not receive any cash proceeds from the subscription.

The company will use the $270m raised through the issuance of the shares as a partial repayment for its $1.88b term loan with Ever Credit Limited, a subsidiary of Kingboard Holdings.

The Chinese property developer has agreed to repay its loan with Ever Credit via instalments. The first instalment amounts to $318.8m.

The subscription consideration of $270m will offset the $318.8m first instalment.