- May 06, 2015
- CDB Capital offers unconditional guarantee on company loan To assist CNTD in obtaining RMB260 million loan at favorable interest rate, Guarantees development and operation of Shanghai Project
(Hong Kong and Singapore, 20 April 2015) ― China New Town Development Company Limited – the future blueprint planner and leading developer of integrated new towns in China (the “Company”, “CNTD”, the “Group”; HKSE: 1278.HK; SGX: D4N.SI, its ultimate controlling entity is China Development Bank Capital Corporation Ltd. (“CDB Capital”), is pleased to announce that CDB Capital provided unconditional guarantee to support the newly arranged loan of RMB 260 million at favorable interest rate by Industrial and Commercial Bank of China (“ICBC”) to Shanghai Golden Luodian Development Company Limited ("Shanghai Golden Luodian"), a subsidiary of the Company.
CDB Capital is the controlling shareholder of the Company with 54.32% shareholding, and the Company is the controlling shareholder of Shanghai Golden Luodian with 72.63% shareholding. Shanghai Golden Luodian is the project company for the development of Shanghai Luodian New Town with the site area as 6.8 square kilometers. Shanghai Golden Luodian has applied for project development loan from Baoshan Branch of ICBC, among which the first batch RMB 260 million was unconditionally guaranteed by CDB Capital with 5 years term, and the annual interest rate is agreed at no higher than the benchmark PBOC rate for such tenor (currently at 5.75%). The proceeds of the loan will be used to fund primary land development and for general working capital purposes.
The spokesman of CNTD comments, “Upon the completion of share subscription, CDB Capital spares no efforts in providing comprehensive supports to the Company’s development. CDB Capital expanded the Company’s operating scale by strengthening the management expertise, and leveraged its nationwide business network resource, brand awareness and networks to bring systematic advantages to CNTD. In addition, CDB Capital’s unconditional guarantee to assist the Company in obtaining financing at favorable cost is an effective evidence of full support to the Company’s development by CDB Capital with its strong credit background.”
“CNTD is the only listed platform of CDB Capital in the business segment of new urbanization. Over the year since CDB Capital’s completion of shares subscription, the Company achieved great progress in its business development with the support of CDB Capital. We would like to take this opportunity to express appreciation to CDB Capital of its persistent support to the Company. Looking forward, with promised full support of our controlling shareholder, CNTD is expected to be a nationwide leading township developer and integrated operator.”