Longfor Repays HK$2 Billion Syndicated Loan in Advance, Full Repayment of HK$15.3 Billion Debt Expected
On December 20th, Longfor Group made a significant move in its debt repayment strategy. The company announced the full repayment of a syndicated loan of HK$2 billion, set to be due in January 2024. This recent repayment comes after a previous advance repayment of HK$13.3 billion, bringing the total amount of debt repaid in advance to HK$15.3 billion. According to earlier reports, Longfor Group had repaid approximately HK$2 billion in syndicated loans by late November.
In related news, several banks have held symposiums on real estate companies, focusing on financing and loan assistance. Longfor Group has participated in symposiums with major banks such as China Construction Bank, Agricultural Bank of China, and Bank of Communications.
Furthermore, Longfor Group CFO Zhao Yi revealed at the company’s interim results meeting on August 18th that their debt pressure has passed. The company has adequate resources to repay its debts due next year, which amount to about 23 billion yuan. Zhao Yi also mentioned that the company is actively pursuing operating property loans, with 76 sky streets already opened and plans for an additional 40 Tianjie. The company estimates its potential operating property loans to be close to 90 billion yuan, with an expected increase of 10 billion yuan in the following year.
In other financial news, Longfor’s former actual controller, Cao Shiru, will continue to serve as the chairman of Hongqi Chain after Sichuan State-owned Assets took over. This follows a change in the controlling shareholder and actual controller of Chengdu Hongqi Chain Co., marking a significant shift in the company’s ownership and management structure.
Yonghui Supermarket has also announced the sale of a 10% stake in Hongqi Chain for approximately 800 million yuan. Despite this sale, Yonghui Supermarket will retain an 11% stake in Hongqi Chain, maintaining its position as the largest shareholder with over 5% of the shares.
Meanwhile, Kangqiao Joy Life Group Co. has met the Hong Kong Stock Exchange’s trading resumption guidelines and is set to resume trading on December 21st. With the completion of necessary financial reporting and internal control reviews, Kangqiao Joy Life is ready to resume trading.
Yuexiu Real Estate Co. Ltd. has received a HK$500 million bank loan with a 12-month term, adding to a previous loan of HK$1.35 billion. And Shanghai Shimao Co. Ltd. plans to renegotiate and adjust the terms of its debt financing instruments at an upcoming holders’ meeting.
Lastly, after 74 years of being listed, Japan’s Toshiba has officially been delisted from the Tokyo Stock Exchange. This marks the end of an era for the once-prominent manufacturing giant, with its privatization proposal being approved and its shares acquired by a domestic consortium. As Toshiba sets its sights on the future, its delisting symbolizes a new chapter in its history.