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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