Evergrande explores private placement after failed IPO
HONG KONG, March 31 (Reuters) - Chinese property developer Evergrande Real Estate Group Ltd is exploring a private placement after it scrapped an initial public offering, a source familiar with the matter said on Monday.
Evergrande's pursuit of a private cash injection comes as property developers face a tight financing market, with the credit crunch making banks less willing to loan money to builders.
Evergrande had planned to raise up to $2.1 billion in a Hong Kong IPO, but scrapped the offer this month due to weak investor interest.
The company faces an uphill battle after once-hot Chinese property stocks have fallen deeply out of favour amid Beijing's numerous efforts to cool the property market and stave off inflation.
The South China Morning Post said on Monday that Evergrande was seeking to raise $400 million in the private placement.
(Reporting by Michael Flaherty; Editing by Anne Marie Roantree)
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