Hainan Airlines Kai Tak 2.5 billion loan extended for six months

HNA Group more than a year ago, has a total of 27.2 billion yuan has won four Kai Tak Development Zone land, during which he raised a number of bridge loan, is now facing repayment peak! Following the first bridge loan originally scheduled to expire in November last year, the Group finally agreed to postpone a 2.5-billion-yuan bridge loan due to expire yesterday (15 March) after a delay of 3 months. The bank loan extension also needs to be extended by banks for 6 months . However, there are still two loans to be expired by the Group next month. The Kai Tak land loan, repayable or refinanced in the next six months, is still over 10 billion yuan.

In December 2016, HNA won the second site of Lot 3L, Kai Tak 1E at MOP5.412 billion and its loan of MOP2.5 billion will expire yesterday. HNA announced its own announcement yesterday. Since the loan arrangement will take time to complete, the bank will extend the bridge loan period for a period of six months to July 15 without disclosing whether the interest conditions are the same as before. HNA also reiterated that it has already made arrangements for the planning and funding of the Kai Tak project and has a sound and multi-faceted arrangement. It also has good relations with the banks. Therefore, the Kai Tak project is well funded and the project is full of confidence as scheduled.

In fact, there are still more Kai Tak land loans, which will expire in the coming months. First of all, HNA’s Hong Kong International Investment (formerly known as HNA Industrial International Investment) voted for the first piece of land in Kai Tak 1K, No. 3, at 8.837 billion yuan in November 2016. Its loan of 3.5 billion yuan was originally scheduled for November last year However, the only reason it has not been renewed by the banks has yet to be repaid. As a result, an early repayment of 700 million yuan will be made and the remaining 2.8 billion yuan will be repaid on or before the 23rd of next month.

In addition, Hainan Airlines’s HNA International Construction & Investment (00687), with land acquisition of No. 1L1 and No.L1 in Kai Tak at Kai Tak of $ 5.529 billion and $ 7.44 billion respectively in January and March 2017, also had 26 Billion and 2.22 billion bridge loan, will expire in February and June this year. The above four bridge loans, a total of 101.2 billion loan still need to repay. Earlier it was reported that HNA is negotiating with Xindi (00016) for financing and is willing to pay annual interest rates as high as 9%.