China's Vanke to raise 15 bln yuan in private placement for projects

Kitco Media
By Reuters
Published:
Updated:
Reuters
BEIJING, Feb 12 (Reuters) - China's property giant Vanke Co Ltd plans to raise up to 15 billion yuan ($2.2 billion) in a private placement of A-shares that it said will fund 11 property projects and boost capital reserves. Vanke plans to sell up to 1.1 billion A-shares, representing 9.46% of its total share capital before the issuance, to up to 35 investors, the company said in a filing to the Shenzhen Stock Exchange on Sunday. The share issue will provide new financial support to help the smooth implementation and timely delivery of its property projects, it said. Debt-ladened property developers have added pressure to a struggling sector and state banks have stepped in to provide fundraising support to aid a severe housing slump.


Vanke, which is China's second-largest property developer by sales and is listed both in Shenzhen and Hong Kong, saw its property services arm Onewo launch Hong Kong's largest initial public offering of 2022. ($1 = 6.8070 Chinese yuan renminbi) (Reporting by Ethan Wang and Bernard Orr; Editing by Christian Schmollinger)

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