China developer Country Garden to raise $300 mln - term sheet (updated)

Country Garden Services Holdings

31/07/2023 16:36

(Updates with details in paragraph 3, background on loss
warning in paragraphs 4-6)
    By Summer Zhen
       July 31 (Reuters) - Chinese property developer Country
Garden Holdings  2007.HK  will raise $300 million in a primary
placement in an attempt to repay its debts, a term sheet seen by
Reuters showed on Monday.
    The placement consists of 1,800 million company shares at a
fixed price of HK$1.30 per share, representing a 17.7% discount
to Monday's closing price.
    Country Garden did not immediately respond to a request for
comment.
    Shares and bonds in Country Garden and its property services
arm, Country Garden Services Holdings  6098.HK , have come under
pressure recently due to liquidity concerns despite the company
signing a dual-tranche loan deal earlier this month. 
    The home builder warned earlier in the day that it would
post an unaudited net loss for six months ending June 30,
compared with a net profit of 1,910 million yuan ($267.31
million) a year earlier.
        It blamed the weakness in its real estate business and a
rise in project-related impairment provisions for the gloomy
view.
  
        China's property sector has seen a string of debt
defaults by cash-squeezed developers over the past few years,
with China Evergrande Group  3333.HK , the world's most indebted
property developer, at the centre of the crisis.
  

($1 = 7.1453 Chinese yuan renminbi)

 (Reporting by Rishav Chatterjee in Bengaluru and Summer Zhen;
Editing by Milla Nissi and Anil D'Silva)
 ((Rishav.Chatterjee@thomsonreuters.com;))