October 22, 2018 / 1:53 AM / a month ago

China Evergrande seeks $1.5 bln fund via HK tower financing deal-sources

HONG KONG, Oct 22 (Reuters) - Highly-leveraged property firm China Evergrande Group is in talks to raise around $1.5 billion this month by offering its Hong Kong office tower as collateral, two sources with direct knowledge of the matter said.

Evergrande bought the office tower in Wan Chai, a bustling business district by day and red-light district by night on Hong Kong island, for HK$12.5 billion ($1.6 billion) in 2015 from Chinese Estates Holdings.

Evergrande, which has yet to fully settle the transaction, plans to use the proceeds partly to pay back offshore debts and make dividend payments, one of the sources said.

Evergrande did not respond to requests for comment. (Reporting by Clare Jim; Editing by Miyoung Kim and Stephen Coates)

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