Fosun Receives RMB12 Billion Syndicated Loan from 8 Banks to Jointly Promote Development of the Private Economy

On January 16, 2023, Fosun High Technology secured a syndicated loan of RMB 12 billion from eight major banks in China, including Industrial and Commercial Bank of China and Bank of China.

Rhea-AI Summary

On January 16, 2023, Fosun High Technology secured a syndicated loan of RMB 12 billion from eight major banks in China, including Industrial and Commercial Bank of China and Bank of China. This loan aims to strengthen financing for private enterprises, boosting public expectations for private sector development. Fosun's Chairman, Guo Guangchang, expressed gratitude for the banks' support, emphasizing the loan's role in enhancing liquidity and business development. As a key player in the consumer sector, Fosun plans to leverage this opportunity to address family-oriented consumer needs in 2023.

Positive

• Syndicated loan of RMB 12 billion strengthens Fosun's liquidity and business development.
• Improved public confidence in financing for private enterprises.

Negative

• None.

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HONG KONG, Jan. 16, 2023 /PRNewswire/ -- On 16 January 2023, Shanghai Fosun High Technology (Group) Co., Ltd. ("Fosun High Technology") and eight domestic banks held a syndicated loan signing ceremony at the Bund Finance Center, Shanghai. According to the agreement, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications as joint lead banks, and China Minsheng Bank, the Export-Import Bank of China, and Shanghai Pudong Development Bank, and as participating banks will jointly form a syndicate to provide Fosun High Technology a loan totaling RMB12 billion.

Shou Ziqi, Vice Chairman of All-China Federation of Industry and Commerce, Vice Chairman of the Chinese People's Political Consultative Conference Shanghai Committee, and Chairman of Shanghai Federation of Industry and Commerce, Representatives of China Banking and Insurance Regulatory Commission Shanghai Supervision Office and Shanghai Local Financial Supervision Bureau, and managements of eight leading banks, Guo Guangchang, Chairman of Fosun International, Wang Qunbin, Co-chairman of Fosun International, Chen Qiyu and Xu Xiaoliang, Co-CEOs of Fosun International, attended the ceremony and witnessed the signing together.

Shou Ziqi congratulated the successful completion of the syndicated loan. He said that the eight banks took concrete measures to work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector, further broadening the financing channels of private enterprises and reducing financing costs. The syndicated loan is not only of great significance to Fosun, but it also plays a positive role in improving public expectations and boosting confidence for development for private enterprises in Shanghai and even the entire country.

The representative of the syndicate said that the 20th National Congress of the Communist Party of China reaffirmed the need to work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector and explicitly proposed to promote development of the private economy for the first time. The Central Economic Work Conference held recently once again emphasized the need to work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector. The successful completion of the syndicated loan is a practical measure taken by the banks to actively provide financial services and guidance, working unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector. As a representative enterprise of China's private sector rooted in Shanghai, Fosun hopes to take this signing as an opportunity for government, banks and enterprises to jointly promote development of the private economy.

Guo Guangchang expressed his gratitude to the eight banks for their long-term trust and support to Fosun. He said that this signing has further deepened the cooperation between Fosun and banks, broadened financing channels, and consolidated liquidity support for business development. In recent years, as a global innovation-driven consumer group, Fosun has been focusing on the consumption needs of families, and achieved steady development in sectors such as Health, Happiness and Wealth. "In 2023, we believe that demand will gradually be unleashed in the family-oriented consumer sector. We will continue to improve our products and services to better meet the needs of families."

The signing ceremony was presided over by Wang Qunbin. Signing representatives and relevant persons in charge of the eight banks, Gong Ping, Executive President and CFO of Fosun International, Li Haifeng, Executive President of Fosun International, Zhang Houlin, Senior Vice President and Co-CFO of Fosun International, Zhu Wenkui, Vice President of Fosun International, Chen Yue, Senior Assistant to the President and Co-CFO of Fosun, attended the signing ceremony.

Founded in 2005, Fosun High Technology is the domestic operating entity of Fosun International Limited ("Fosun International", HKEX: 00656) and is mainly responsible for Fosun International's domestic industry operations.

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SOURCE Fosun

FAQ

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What is the significance of Fosun's RMB 12 billion loan?

The RMB 12 billion loan enhances Fosun's liquidity and helps boost confidence in the private sector.

Which banks participated in Fosun's syndicated loan?

The participating banks included Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China.

When was the loan agreement signed?

The loan agreement was signed on January 16, 2023.

What are the expected benefits of the loan for Fosun?

The loan is expected to broaden financing channels and support Fosun's business growth, especially in serving family-oriented consumer needs.

How does the loan impact private sector development in China?

The loan aims to enhance public expectations and support the development of private enterprises in Shanghai and across China.