Debt-ridden property developer Yuzhou to raise $1.5 bln (updated)

Yuzhou group Co

01/11/2024 01:18

(Adds further details, background from paragraph 3 onwards)
       Nov 1 (Reuters) - Shanghai-based property developer
Yuzhou Group  1628.HK  said on Friday it will raise around
HK$12.01 billion ($1.54 billion) while it is in the middle of
restructuring its offshore debts. 
    The company will issue 5.65 billion existing shares at
HK$2.127 apiece. 
    Yuzhou — one of the many property firms hurt by a slowdown
in China's real estate market — offered a restructuring plan in
August 2023, a year after it defaulted on dollar bond payments.
    China is presently trying to support the housing market by
rolling out multiple incentives such as the recent fund boosts
for housing projects.  
    In an effort to prop up share prices, the Chinese developer
has also proposed to implement a share consolidation. Every ten
issued shares worth 10 Hong Kong cents each would be
consolidated into one share valued at HK$1. 
    

($1 = 7.7739 Hong Kong dollars)

 (Reporting by Sneha Kumar in Bengaluru; editing by Alan Barona)
 ((Sneha.Kumar@thomsonreuters.com))