[Asia Economy Reporter Kim Suhwan] Evergrande (恒大), China's second-largest real estate developer facing a debt default crisis, announced on the 29th that it will sell its 19.93% stake in its subsidiary, Shengjing Bank.
If this sale is completed, Evergrande is expected to secure approximately 1.8 trillion KRW in funds.
This sale must go through approval procedures from the China Banking and Insurance Regulatory Commission and the State-owned Assets Supervision and Administration Commission.
Evergrande Group stated regarding this stake sale, "It is expected that a state-owned enterprise will participate as the buyer," and added, "The operations of Shengjing Bank will stabilize."
Currently, Evergrande Group's debt amounts to 302 billion USD (approximately 358 trillion KRW).
Earlier on the 23rd, Evergrande was required to pay interest on its dollar bonds (about 99.3 billion KRW) and yuan bonds (about 42.5 billion KRW). However, it is reported that Evergrande only paid the interest on the yuan bonds and failed to pay the interest on the dollar bonds.
Meanwhile, on this day, Evergrande faces an additional payment obligation of about 55.9 billion KRW in dollar bond interest.
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