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HONG KONG (Reuters) - China Evergrande Group (3333.HK) said on Monday it has completed redeeming 71.3 percent, or 80.56 billion yuan ($11.84 billion), of its outstanding perpetual capital instruments and plans to redeem the remainder of such instruments by the end of June.
Shares of the country's top homebuilder closed up 11.3 percent at a record high on Monday ahead of the announcement. Evergrande shares have soared 90 percent since mid-May.
The property developer, sitting on corporate China's second-biggest debt pile, had vowed in March to enhance debt control by repaying most of its high-interest loans, and said it was confident its leverage ratio will fall after strong sales and an A-share backdoor listing this year.
Evergrande still has 28.8 billion yuan of outstanding perpetual capital instruments. The redemptions, announced in a statement on Monday, exceed the company's original targets, which was repaying half in the first half of 2017, and a total of two-thirds by the end of the year.
Analysts said Evergrande would see significant improvement in both earnings and balance sheet after repaying all the perpetual capital instruments.
Reporting by Clare Jim; Editing by Muralikumar Anantharaman