Heavily indebted Chinese state-controlled solar developer Panda Green opened US$150 million of new credit lines a day before announcing huge losses for 2019.
State-owned lender China Construction Bank opened new US$125 million and US$25 million credit lines according to a stock market announcement made by Hong Kong-listed developer Panda Green on Thursday. The company, which is more than 74% state-owned after a HK$1.79 billion (US$231 million) bail-out in February, will have to repay the US$125 million borrowed to restructure its huge debts within three years of drawing upon that credit line. The US$25 million earmarked for operating costs will have to be repaid within a year of activation.
Panda Green said the loans were underwritten by state-owned Beijing Energy Group, which acquired a 32% holding in the business with that February bail-out.
The solar project developer announced full-year net losses of RMB3.6 billion (US$510 million) for last year a day after revealing details of its latest credit lines, up from a RMB454 million reverse in 2018.
As things stand, Panda Green will have to drum up US$10.99 million borrowed from state-owned 13.59% shareholder Huaqing Solar Power Ltd by June 27 and US$260 million owed to state-owned 15.47% backer China Merchants Group Ltd by July 23.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: firstname.lastname@example.org.