Property News · October 30, 2020

Creeping funding costs at above-market rates in the shadow banking world skew Evergrande's plan to pare back debt


China Evergrande Group has taken to seeking loans at above-average interest rates in the shadow banking market, where caution even there over its cash flow hints at an increasingly fraught effort to reduce the property sector’s biggest debt.The developer, which owed 835.5 billion yuan (US$125 billion) at June-end, has been shopping around for cash among small banks and private trusts at high rates to fund developments, as proposed limits to the permitted size of real estate debt stymie big-bank…

Source : South China Morning Post
Read more…Creeping funding costs at above-market rates in the shadow banking world skew Evergrande’s plan to pare back debt

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