Country Garden to raise HK$4.81 billion in share placement to refinance offshore debt


Country Garden Holdings Co.

plans to raise gross proceeds of almost 4.81 billion Hong Kong dollars (US$618.5 million) in a share placement to refinance offshore debt.

The Chinese property developer, which for years ranked as the country’s top real-estate developer by contracted sales, said Wednesday that it would place 1.78 billion new shares at HK$2.70 apiece, representing a nearly 15% discount to Tuesday’s closing price.

The Guangdong-based company intends to use proceeds to refinance existing offshore debt and for general working capital, it said in a disclosure to the Hong Kong exchange. The placement shares will represent 6.44% of the company’s enlarged issued share capital.

The plans will add to the funds raised by Country Garden this year via equity fundraising deals to refinance offshore debt, including net proceeds of more than HK$6.5 billion in share placements and more than HK$3.8 billion in convertible bonds.

UBS is advising on the share placement.

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