China Evergrande considers transferring assets to property unit for debt payment

The developer, which is about $300bn in debt, is in talks to muster funds to repay loans

A general view shows Evergrande residential buildings under construction in Guangzhou, China. AFP
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China Evergrande Group said on Wednesday that it was considering transferring some assets to its property unit to settle some of its debt payments.

In July, the company revealed that loans secured by Evergrande Property Services had been diverted to the parent group, which led to Evergrande Group's chief executive and finance head stepping down.

Deposits held by the property unit worth 13.4 billion yuan ($1.9bn) had been used as collateral for pledge guarantees and were seized by banks.

Evergrande Group, which is about $300bn in debt, said in a filing that it was in talks with the unit to muster funds to repay the loans.

The group added that it had sold 18.16bn yuan worth of properties from January to August, and that it has 706 pre-sold but undelivered construction projects.

Updated: September 21, 2022, 3:01 PM
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