- Jan 06, 2015
- CNTD and ICBC Shanghai reach a MOU for RMB10 billion credit
(Hong Kong and Singapore, 6 January 2015) - China New Town Development Company Limited – the leading planner and 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 the Company has signed a memorandum of understanding (the "MOU" ) for strategic cooperation with Industrial and Commercial Bank of China Shanghai Branch ( "ICBC Shanghai Branch" ) to agree on the establishment of a long-term close partnership of financing strategy on 4 January 2015.
Pursuant to the MOU, ICBC Shanghai branch will grand the Company an additional credit aggregate to not more than RMB 10 billion, preferentially used for supporting the large-scale urbanization projects located in the major cities in China that the Company plans and operates, especially the current projects in Shanghai, Nanjing and Shenyang. In addition, ICBC Shanghai Branch shall provide cross-border RMB business services to the Company leveraging off relevant free trade zone policies, and explore multiple innovative financing structures to support the Company’s mid-to-long term funding needs. Meanwhile, the Company shall provide ICBC Shanghai Branch with information relevant to the development of new towns in major cities of China, to facilitate its full-fledged financial services support to the Group.
New town development is a capital-intensive industry. The ultimate controlling shareholder, China Development Bank possesses vigorous financing capacity. As China's largest commercial bank, Industrial and Commercial Bank of China (“ICBC”) has extensive financial resources domestically and overseas. The new strategic cooperation with ICBC is favourable to CNTD’s development with further credit support as well as diverse and innovative financing on its large-scale new town development projects in China.
The spokesperson of CNTD comments, ‘‘The 10 billion RMB of total new credit and cross-border RMB business services in the future will help to meet the Group’s funding needs for long-term development, and promote a rapid growth of the company's business. In the future, the Group will continue to leverage off the strong financial background of its controlling shareholder and strategic partner to continuously optimize the Group's funding costs. At the same time, the Group will actively look for more valuable investment of new town development projects, to create maximum value for shareholders”—End—