Beijing Gas Blue Sky (06828) announced that on December 14, 2023, the company entered into new financing documents with Beijing Gas, Beijing Gas Hong Kong and Beiren Jingtang (British Virgin Islands). Beijing Gas agreed to provide the company with new financing (that is, term loan financing with a total amount of HK$700 million equivalent to RMB). It uses about 20.92% of the issued shares of the company's wholly-owned subsidiary, Beiren Jingtang (Hong Kong), as collateral for Beijing Gas's beneficiaries.
Considering the high interest rate environment, the board of directors discussed new financing and new financing documents with Beijing Gas and Beijing Gas Hong Kong to control the company's financial costs and improve the company's financial performance. For illustrative purposes only, based on 4.96% of HIBOR (one month), the interest rate difference between the previous financing agreement and the new financing documents is expected to be about 4.69%, and the interest rate under the new financing is expected to reduce the company's financial costs by about HK$33 million per year during the remaining period of the new financing. Therefore, the board of directors believes that the interest rate under the new financing is in the overall interest of the company and its shareholders.