While Beijing-based Li Ning group plans to raise $1.4bn through new shares for international expansion, China’s Evergrande sold a $1.5bn stake in a bank to pay down some of its debt.

On Thursday, Chinese sportswear group Li Ning Co. Ltd. announced its plan to sell $1.35 billion (HK$10.5 billion) worth of new shares to raise capital for international expansion and investment in newly launched product categories, Reuters reported.

In a filing to the Hong Kong bourse, the company named after a famous Chinese gymnast disclosed the plan to sell 120 million new shares, or 4.59% of the enlarged share capital, to its major shareholder Viva China Holdings Ltd.

The new shares will be issued at HK$87.50 apiece, or an 8.09% discount to Wednesday’s close, with proceeds earmarked for investment in re-engineered infrastructure and supply chain systems for brand building and working capital Reuters added.

$1.4bn is also close to the amount that debt-laden Chinese behemoth Evergrande raised in late September by selling part of its stake in Shengjing Bank to a state-owned investment group ($1.5bn) in their battle for survival amid mounting pressure over bond repayment deadlines, according to Financial Times. However, the sale amount is almost nothing compared to Evergrande’s total liabilities of more than $300bn.

Recently, Bloomberg News reported that advisers representing Evergrande and a group of its offshore bondholders seek to exchange information with Evergrande, including the status of various projects, liquidity, and asset valuation after earlier outreach attempts were denied.

Reuters asserted that Evergrande’s debt crisis is fuelling worries about the effect of its fate on global markets.

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