Country Garden raises HK$270 million via share issuance to repay debt

By Marisa Wong

Los Angeles, Aug. 31 – Country Garden Holdings Co. Ltd. announced an issue of new shares under a subscription agreement with Ever Credit Ltd. entered into on Aug. 30 before trading hours.

The company agreed to allot and issue to Ever Credit 350,649,350 shares at HK$0.77 per share for a total consideration of HK$270 million.

The total consideration will be set off against the HK$318,775,890.41 that Country Garden owes Ever Credit under the HK$1.88 billion term loan facility agreement dated Dec. 1, 2021 between Country Garden as borrower and Ever Credit as lender.

As a result, no cash proceeds will be received by the company from the subscription.

The transaction is expected to settle on Sept. 6.

After that, the outstanding principal amount that the company owes under the facility agreement will be HK$1,598,000,000, which the company will repay in installments, the last of which is in December.

Country Garden is a Foshan, China, real estate developer.

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