HONG KONG, (Reuters) – Sunac China Holdings Ltd, a Chinese property developer, said Thursday that it plans to raise HK$4.52 Billion ($580.09 Million) through a share sale. This will be used for the repayment of loans.

It stated in a filing submitted to the Hong Kong stock exchange that the Hong Kong-listed developer will sell 452 million shares (or 8.3%) to Sunac International Investment Holdingss as controlling shareholder.

New shares will be sold at HK$10 per piece, which is a 15% discount on Wednesday’s closing prices of HK$11.80.

Sunac shares plunged 22 percent to HK$9.2 in afternoon trading, compared with a 0.2% drop in the wider market

Sunac was told by a source that it does not have plans to put its shares or units in Sunac Services shares to raise capital in the immediate future. Sunac also stated that they are able to cover short-term debt repayment obligations and fund development.

Sunac China has not yet responded to my request for comment.

Sunac Services was last to issue new shares, and Sunac Services sold its stake in Sunac Services on November 17th. The total raised by Sunac Services is $948 Million.

Sunac Services informed investors Tuesday that it had neither a share placement plan nor any new connected-party transactions planned and would resume buybacks according to Jefferies.

The controlling shareholder will purchase the shares in the latest share placing after having sold the existing shares to the third party investors at the same prices.

Morgan Stanley & Co (NYSE:). International plc serves as the placement agent.

($1 = 7.7919 Hong Kong dollars)