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HNA Group pledges stake in Chinese bank for cash

12/25/2017| 9:46:27 AM|

Hainan Province CiHang Foundation, HNA’s largest shareholder in China, pledged 919.3 million shares of China Postal Savings Bank on Dec. 15, according to a regulatory filings by the lender.

Indebted HNA Group has pledged some of its stake in Postal Savings Bank of China as collateral to borrow money, Chinese conglomerate’s latest move to ease a liquidity squeeze.

The stake was valued at HK$2.83 billion (USD 362 million), regulatory filings show.

The statement showed that China International Fund SPC increased its stake in the bank by 919.3 million shares through a securities borrowing and lending agreement.

Shares of Postal Savings Bank was up 1.49% to close at HK$4.09 on Friday.

Caixin reported earlier that two subsidiary airlines of HNA Group were briefly suspended by a state-owned accounting service after repeatedly missing payments. Chinese lender Citic Bank also said that an arm of HNA has had difficulties in paying bankers’ acceptances, a short-term debt instrument issued by the company, Bloomberg News reported earlier this week.

In an apparent attempt to soothe market concerns over its financial strength to pay off near-term debt, the group said in a statement last week that it had met with representatives from eight policy and commercial banks to discuss the company’s credit facility for 2018, and reiterated in a statement that it still had 310 billion yuan (USD 47.2 billion) in unused credit lines from major banks.

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TAGS: HNA Group | Postal Savings Bank | CiHang Foundation
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