Chinese property developer China Evergrande announced on Sunday that its Hong Kong-listed electric vehicle (EV) unit has raised HKD 26bn ($3.4bn) via a share sale to new investors. The EV unit, China Evergrande New Energy Vehicle Ltd will issue 952.4mn shares to six new investors at a 9% discount to Friday’s closing price. The new investors are China Gas Chairman Liu Minghui, Chan Hoi-wan who is the spouse of Chinese Estate shareholder Joseph Lau, Cosmic Success Holdings, Upper World, Heyirong International Trade and Greenwoods Global Investment. Evergrande, the world’s most indebted real estate developer has been looking to shore up cash to bring its financial ratios within the thresholds set by Beijing’s three-red-lines. The Shenzhen-based company’s liabilities to assets currently stand at 85.3%, net debt to equity at 219.5% and cash to short term debt at 0.19x, all metrics flouting Beijing’s thresholds of less than 70%, less than 100% and greater than 1x respectively.

The company ended 2020 with total debt of CNY 716.5bn ($110.6bn), down CNY 157.8bn ($24.3bn) from March last year and plans to trim debt further by CNY 150bn ($23bn) this year.

Evergrande’s 8.75% bonds due 2025 traded slightly lower at 82.1 while its 7.5% bonds due 2023 traded slightly higher at 86.6 cents on the dollar.

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