Dalian Wanda Group Co. is in discussions for an offshore loan to pay off a $350 million dollar bond maturing next month, according to people familiar with the matter.
(Bloomberg) — Dalian Wanda Group Co. is in discussions for an offshore loan to pay off a $350 million dollar bond maturing next month, according to people familiar with the matter.
The Chinese conglomerate is talking with state-controlled Industrial & Commercial Bank of China Ltd. about financing that would be backed by onshore assets of Wanda, the people said, who asked not to be identified discussing private matters. Wanda management told some investors in mid-January that it plans to raise around $350 million from the loan, the people also said, adding details are subject to change.
Wanda and ICBC had no immediate comment.
A unit of Wanda’s property arm sold a $400 million note last month with a 12.375% yield, well above the conglomerate’s other dollar notes.
Still, it was a rare junk-rated dollar bond in the property sector and among signs of previously shut financing channels opening up for Chinese private-sector firms. A subsidiary of fellow conglomerate Fosun International Ltd. signed an agreement last month to receive a $1.8 billion credit line from lenders including ICBC. China’s mega banks, led by ICBC, have pledged at least $190 billion of financing support to some of the country’s biggest developers.
–With assistance from Lorretta Chen and Emma Dong.
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