Gelonghui, March 19, 丨 Bank Construction International (00171.HK) announced that on March 18, 2024, the company signed a memorandum of understanding with Guangdong Zhuguang. According to this, the company intends to sell and Guangdong Zhuguang plans to acquire loan rights, and the costs must be paid by Guangdong Zhuguang in the following ways: (i) Undertaking the obligation of Beijing Donghuan to repay the entrustment loan of the total amount of RMB 1.88 billion and accrued interest, and release of all existing mortgages, guarantees and share pledges in accordance with the requirements of the party and lender and/or share pledge (if required)); and (ii) transfer of such target properties.
As of the date of this announcement, loan benefits included 54 loans advanced by such lenders to 52 Chinese borrowers and 2 Hong Kong borrowers, all of which were unsecured. With the exception of the five loans with outstanding principal and interest of approximately HK$97 million, all other loans were overdue. Interest rates on such loans range from 15% per year to 20% per year. As at 31 December 2023, the total amount of outstanding principal and interest under the loan agreement for loan benefits was approximately RMB2,201 million.
These lenders are comprised of the Company and its wholly-owned subsidiaries, including (i) Bank Construction International Finance; (ii) Bank Construction International Guangzhou; (iii) Bank Construction Energy Trading; (iv) Beihai Maoyuan; (v) Beijing Donghuan; and (vi) Taizhou Yinjian. These target properties are located in Guangdong Province and include about 1,470 parking spaces, with a total construction area of about 17,800 square meters.