July 6, 2017 / 12:46 AM / 6 months ago

China Evergrande says to redeem $659 mln outstanding notes

HONG KONG, July 6 (Reuters) - China Evergrande Group on Thursday said it will redeem an aggregate outstanding amount of $658.8 million of senior notes due 2018, 2019 and 2020, in a bid to lower financing costs and improve the debt maturity profile of its offshore financing.

The company will use the proceeds from the issuance of 2021, 2023 and 2025 senior notes to fund the payment and there will be no further outstanding 2018, 2019 and 2020 notes on completion of the redemption, China’s top property developer said in a filing to the Hong Kong bourse.

Evergrande, which has the second-largest debt pile among Chinese corporates, said its debt structure will be further improved with extended maturity profiles and lower financing costs which will support growth.

In June, China Evergrande told shareholders that it planned to redeem its debt using proceeds from strategic investors and internal cash.

The company has raised 70 billion yuan ($10.30 billion) from strategic investors for most of its property assets, which are slated for a backdoor listing in Shenzhen. (Reporting by Donny Kwok; Editing by Himani Sarkar)

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