A key subsidiary of Fosun International Ltd., one of China’s largest private conglomerates, is close to securing a long-awaited credit line from some of the nation’s biggest state-owned banks, people familiar with the matter said.
(Bloomberg) — A key subsidiary of Fosun International Ltd., one of China’s largest private conglomerates, is close to securing a long-awaited credit line from some of the nation’s biggest state-owned banks, people familiar with the matter said.
Shanghai Fosun High Technology Group Co. is in advanced talks for an onshore loan totaling about 12 billion yuan ($1.8 billion) with lenders led by Industrial & Commercial Bank of China Ltd., according to the people, who asked not to be identified as they’re not authorized to speak publicly.
Details of the loan are subject to change, pending final approval from participating banks, the people said. The deal may be finalized as soon as mid-January, according to one of the people.
Backed by billionaire Guo Guangchang, Fosun has rallied back in credit markets in recent months after it unveiled a slew of planned asset sales and weighed potentially billions of dollars in other deals, including for the Club Med resort chain. Its dollar bonds due Jan. 29, for example, have rebounded to about 99 cents from as low as 76 cents in October. Some of its notes had fallen to record lows last year as concerns mounted over its liquidity strength.
An officer in charge of information disclosure at Fosun High Technology said the loan is “on track” and declined to elaborate. There was no immediate reply from Fosun International to a request for comment. ICBC didn’t immediately respond to a request seeking comment.
Fosun High Technology has also been seeking other financing. It’s considering the issuance of as much as 1 billion yuan of onshore bonds that would be protected against default by derivatives, people familiar with the matter said last month. The firm hasn’t issued yuan notes since April, according to data compiled by Bloomberg.
–With assistance from Shirley Zhao.
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