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Financials

China Evergrande targets 3.7% sales growth in 2021, cut debt by 20%

HONG KONG, Jan 5 (Reuters) - China’s most indebted property developer Evergrande Group said on Tuesday it targets 750 billion yuan ($116.04 billion) of sales in 2021, around the same level as last year, and vowed to cut its interest-bearing debt by another 20% in the new year.

China Evergrande has been scrambling for cash as Beijing tackles what it considers excessive borrowing in the real estate development sector with planned new debt-ratio caps.

The company’s new target compares to 723.25 billion yuan contracted sales achieved in 2020, which was 20.3% higher than 2019, Evergrande said in a statement. But the figure fell short of the targeted 800 billion yuan set in the beginning of the year.

The company’s balance of interest-bearing indebtedness was 716.5 billion yuan at the end of the year, down 157.8 billion yuan from March. The developer said it targets to reduce the balance by a further 150 billion yuan this year. ($1 = 6.4635 Chinese yuan renminbi) (Reporting by Clare Jim; Editing by Raju Gopalakrishnan)

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