BEIJING, Sept. 19 (BNA) – Cash-strapped Chinese developer Evergrande Group has begun paying its wealth management products through real estate, a unit of major real estate group Hengda said.
Evergrande, which has more than $300 billion in liabilities, is experiencing a liquidity crunch that has seen it race to raise funds to pay off several lenders and suppliers. It has a bond interest payment of $83.5 million due on September 23, according to Reuters.
In a post on WeChat dated Saturday, the company said that investors interested in redeeming wealth management products for physical assets should contact investment advisors or visit local offices.
Financial news agency Caixin reported Sunday that an estimated 40 billion yuan ($6 billion) in Evergrande wealth management products is pending. These products are usually held by retail investors.
A customer service representative told Reuters on Sunday that the specific payment methods and details are subject to local conditions.
According to a proposal previously seen by Reuters and not confirmed by Evergrande, wealth management product investors can choose between apartments, offices, retail space or discounted parking for payment.
Earlier this month, a stock exchange filing showed that Evergrande had paid off 219.5 million yuan of overdue debt due to supplier Skshu Paint in the form of apartments on three unfinished real estate projects.
On September 10, Evergrande pledged to pay off all outstanding wealth management products as soon as possible.