(Benzinga) – The electric vehicle unit of property developer China Evergrande Group said on Sunday it would bring in six new investors and will raise $3.4 billion to repay debt and fund research, Reuters has reported.
What Happened: The firm, China Evergrande New Energy Vehicle Ltd, said it will issue $952.4 million shares to the new investors. The investors are China Gas Chairman Liu Minghui, Cosmic Success Holdings Ltd, Upper World Ltd, Heyirong International Trade Co. Ltd, Greenwoods Global Investment Ltd and Chan Hoi-wan, the spouse of Chinese Estate shareholder Joseph Lau.
Why It Matters: The company has been struggling to repay debts and is facing Beijing’s new debt-ratio caps to tackle excessive borrowing from the market. Last year, China Evergrande was scrutinized by the National Development and Reform Commission, which demanded production and investment information from the company.
The company raised $516 million from Tencent Holdings, Sequoia Capital and others in 2020.
Photo courtesy Of Byton.
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