Evergrande raises US$1.5b by selling convertible securities

Shanghai

EVERGRANDE Real Estate Group Ltd will raise US$1.5 billion by selling convertible securities to investors including New World Development Co, replenishing capital after an acquisition spree by the Chinese developer this year.

The investors include New World China Land Ltd and Chow Tai Fook Enterprises Ltd, which are controlled by the family of billionaire Cheng Yu-Tung, Evergrande said in a filing to the Hong Kong stock exchange late on Wednesday. The securities are convertible into stock at HK$8.06 (S$1.46) each, and would give the investors a combined 9.36 per cent stake in the enlarged share capital, China's third largest developer said.