Chinese lender to issue bonds for M&A in cash-strapped property sector

Chinese lender to issue bonds for M&A in cash-strapped property sector

Photo by Christian Lue on Unsplash

Property developer shares rose on Tuesday after a Chinese lender unveiled a plan to issue debt to fund real estate acquisitions – the first bank to do so – while Beijing sought to reassure investors about the broader impact of defaults on bond markets.

Shanghai Pudong Development Bank Co plans to raise 5 billion yuan ($790 million) by selling three-year bonds through China’s interbank market, it said in a filing on Monday. The funds would be used to finance real estate project acquisitions in the form of lending, it said.

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