With Local Government Backing, Evergrande Secures Funding to Complete Some Projects

With local government support, cash-strapped China Evergrande Group has secured money to finish a number of housing developments from banks, state-owned enterprises, and local partners weighing their best options, sources close to the company told Caixin.

In Northeast China’s Liaoning province, the developer has reached an agreement with the local government and contract builders, with the contractors promising to finish the projects with their own funds. Evergrande has agreed to use some of the projects’ properties and proceeds from housing sales as collateral to repay the contractors under government supervision, the sources said.