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China’s Country Garden is planning a $500 million share sale to refinance offshore debt

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Chinese real estate developer Country Garden Holdings said on Tuesday it plans to sell HK$3.92 billion ($500 million) worth of shares in a stock placement, raising capital to refinance existing offshore debt and general working capital.

The Guangdong-based company plans to sell 1.463 billion shares, representing 5.66 percent of its increased share capital, to outside investors for HK$2.68 each, it said in a filing with the Hong Kong Stock Exchange. .

The issue price represents a discount of 17.79 percent from Monday’s closing price of HK$3.26 per share. UBS and JP Morgan are the placement agents.

($1 = 7.8364 Hong Kong Dollars)