HONG KONG, June 15 China Evergrande Group
, the nation's top property developer, on Thursday told
shareholders it plans to redeem its debt using proceeds from
strategic investors and internal cash, including perpetual
bonds, according to people who attended the meeting.
Three shareholders who attended Evergrande's annual general
meeting in Hong Kong said Chief Financial Officer Pan Darong
told them the company plans to submit a restructuring proposal
to China Securities Regulatory Commission (CSRC) for a backdoor
listing in two months.
The regulator would take three or four months to review the
proposal, he added.
Evergrande declined to comment.
The company, which has the second-largest debt pile among
Chinese corporates, said last week it wants to redeem all of its
perpetual debt by this month-end, ahead of plan.
However, a few analysts said it was not clear how the
redemption would be funded, and that additional debt to replace
these bonds - classed as equity - could actually raise
The company has raised 70 billion yuan ($10.30 billion) from
strategic investors for most of its property assets, which are
slated for a backdoor listing in Shenzhen, on conditions of
repurchase obligation or compensation.
The company is seeking a backdoor listing valued at 198
billion yuan ($29 billion) in Shenzhen, aiming to take advantage
of higher valuations commanded on the mainland due to a large
pool of retail investors. The plan will make it easier for
heavily indebted Evergrande to raise funds.
($1 = 6.7935 Chinese yuan)
(Reporting by Doris Huang and Jasper Ng; Writing by Clare Jim;
Editing by Sherry Jacob-Phillips)