Corrects headline, paragraph 1 to show that Yuzhou will issue $1.5 billion of shares to creditors, not raise new funds. Clarifies paragraph 2 to show shares will be exchanged for debt of some creditors.

Nov 1 (Reuters) - Shanghai-based property developer Yuzhou Group 1628.HK said on Friday it will issue around HK$12.01 billion ($1.54 billion) worth of shares to some creditors as part of the restructuring of its offshore debts.

The company will issue 5.65 billion existing shares to be exchanged with some creditors for their debt at a rate of HK$2.127 apiece, it said in a statement to the Hong Kong Stock Exchange.

Yuzhou — one of the many property firms hurt by a slowdown in China's real estate market — offered a restructuring plan in August 2023, a year after it defaulted on dollar bond payments.

China is presently trying to support the housing market by rolling out multiple incentives such as the recent fund boosts for housing projects.

In an effort to prop up share prices, the Chinese developer has also proposed to implement a share consolidation. Every ten issued shares worth 10 Hong Kong cents each would be consolidated into one share valued at HK$1.

($1 = 7.7739 Hong Kong dollars)

(Reporting by Sneha Kumar in Bengaluru; editing by Alan Barona)

((Sneha.Kumar@thomsonreuters.com))