Shenzhen Shenye Logistics Group Co, a subsidiary of private developer Baoneng Group, will make a private placement of 5 billion yuan ($752 million) in bonds, with the proceeds being used to repay debt and improve liquidity, domestic news portal caixin.com reported on Wednesday.
The first tranche, worth nearly 2.5 billion yuan, has already been issued. Shenzhen Jushenghua, another unit of Baoneng Group, was the guarantor.
Buyers are still being sought for the second tranche, according to caixin.com.
The issue isn't going smoothly because wary investors are worried about the dispute between Baoneng and China Vanke Co, said the report, noting that most of the bonds that have been issued so far were bought by Shenye Logistics' partners.
Shenzhen Jushenghua itself is facing capital pressure, a media report said.
As of October 2015, the debt of Shenzhen Jushenghua was 30.7 billion yuan, up 21 billion yuan from the end of 2014, yicai.com reported in December 2015.
Earlier this year, some banks tightened lending to Baoneng after media reports about its capital pressure, according to a report in February by caixin.com.
A bond issue of 4.5 billion yuan proposed by Shenzhen Jushenghua was blocked by the Shanghai Stock Exchange in May 2015, according to caixin.com.
Between July and August 2015, Baoneng Group spent more than 40 billion yuan to acquire 24.29 percent of Vanke's shares, becoming its largest shareholder.
Shenzhen Jushenghua and Foresea Life Insurance, two units of Baoneng, have called for an extraordinary general meeting to dismiss the board of Vanke, said an announcement on an official information disclosure website cninfo.com.cn on Monday.
China Resources Group, a State-owned conglomerate, now holds a 15.24 percent stake in Vanke, which is the second-largest shareholders of Vanke.
On Monday, Vanke held a shareholders' meeting in Shenzhen, South China's Guangdong Province.
Wang Shi, the founder and chairman of Vanke, said at the meeting that "I'm an executive director rather than a nominal chairman of the board of China Vanke Co ... I am responsible for the operation of Vanke and truly take part in its business," according to a live broadcast on sina.com.cn on Tuesday.
Vanke's shares in Hong Kong closed 2.28 percent lower on Wednesday at HK$14.58 ($1.88).
Its Shenzhen-listed shares have been suspended since December 18.
