⁍ China Evergrande Group, the country’s most indebted property developer, on Wednesday said it has raised $555 million in a secondary share sale.

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⁍ The firm sold 260.65 million shares at HK$16.50 ($2.13) each – the low end of a price range flagged by its bankers in a term sheet when the deal launched on Tuesday.

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⁍ Evergrande has been scrambling to raise cash as China’s government tackles what it considers excessive borrowing in the real estate development sector.

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– Evergrande Group, China’s most indebted property developer, is scrambling to raise cash as the country’s government tries to rein in excessive borrowing in the real estate sector. The company has been scrambling to raise cash as China’s government tries to rein in excessive borrowing in the real estate sector with new debt-ratio caps. Evergrande has been scrambling to raise cash as China’s government tries to rein in excessive borrowing in the real estate sector with new debt-ratio caps. Since August, the developer has raised $3 billion in pre-IPO funding for a property management unit, given a 30% discount on properties to boost sales, and reached a deal to stop investors asking it to repurchase their $12.66 billion holding of another of its units. This week, it conducted an onshore bond sale. The Hong Kong-listed company had planned to sell 490 million shares at HK$16.50 to HK$17.20 each, to raise $1.04 billion to $1.087 billion, the term sheet showed. “The market is particularly concerned about high-gearing property developers, so even though the share discount this time was quite big, investor appetite was cold,” an investment strategy director at Tiger Faith Asset Management tells Reuters. After the announcement, Evergrande shares were trading at HK$16.24 as of Wednesday. People with direct knowledge of the matter said Evergrande often set ‘ambitious’ targets, and that investors in the deal were already familiar with the developer and not worried the firm would become insolvent. “It’s too well connected,” one source said.