China Evergrande proposed to convert loans to Evergrande NEV’s new shares

 

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As part of the proposed restructuring, Embattled China Evergrande Group has proposed to convert some loans provided to its non-wholly owned subsidiary China Evergrande New Energy Vehicle Group into new shares of the carmaker, at the conversion price of HK$3.84 per share, according to a filing of Hengda Real Estate Group, subsidiary of China Evergrande Group.

Subscribers would conditionally subscribe for 5.441 billion shares in total, involving about 20.895 billion yuan, it said.

A portion of the new shares will be used as the exchange asset for Evergrande NEV’s mandatory convertible bonds to be issued by China Evergrande, while another portion will be deposited into the custodian account for the equity of the Evergrande NEV equity-linked notes.

China Evergrande has agreed to waive any interest accrued on the outstanding principal amount of the shareholder loan provided by it to Evergrande NEV during the period from 15 August to the completion date.