Wanda Seeking Loan for Repaying $350 Million March Bond, Sources Say

Bloomberg News, Bloomberg News

An employee stands by the promotional pavilion for the Dalian Wanda Group during preparations ahead of the FIFA World Cup outside the Luzhniki stadium in Moscow, Russia, on Wednesday, June 13, 2018. According to an April report from the organizing committee, the total amount spent on preparations is 683 billion rubles, or about $11 billion at the current exchange rate. Photographer: Andrey Rudakov/Bloomberg , Bloomberg

(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.