Heavily indebted Chinese state-controlled solar developer Panda Green opened US$150 million of new credit lines a day before announcing huge losses for 2019.
State-owned lender China Construction Bank opened new US$125 million and US$25 million credit lines according to a stock market announcement made by Hong Kong-listed developer Panda Green on Thursday. The company, which is more than 74% state-owned after a HK$1.79 billion (US$231 million) bail-out in February, will have to repay the US$125 million borrowed to restructure its huge debts within three years of drawing upon that credit line. The US$25 million earmarked for operating costs will have to be repaid within a year of activation.
Panda Green said the loans were underwritten by state-owned Beijing Energy Group, which acquired a 32% holding in the business with that February bail-out.
The solar project developer announced full-year net losses of RMB3.6 billion (US$510 million) for last year a day after revealing details of its latest credit lines, up from a RMB454 million reverse in 2018.
As things stand, Panda Green will have to drum up US$10.99 million borrowed from state-owned 13.59% shareholder Huaqing Solar Power Ltd by June 27 and US$260 million owed to state-owned 15.47% backer China Merchants Group Ltd by July 23.
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