HNA property unit pledges 41 pct stake as collateral for loan

Tysan Holdings

21/02/2018 03:40

HONG KONG, Feb 21 (Reuters) - A HNA Group  HNAIRC.UL  unit 
said it has pledged about 41 percent of the company as 
collateral for a loan from a Hong Kong private equity firm, part 
of a slew of fundraising efforts by the Chinese conglomerate to 
address a liquidity crunch. 
    The real estate development unit, Hong Kong International 
Construction Investment Management Group Co Ltd (HKICIM) 
 0687.HK , pledged 1.4 billion shares with PAG Holdings Ltd, 
which owns alternate investment management firm PAG. 
    The fundraising comes on the heels of a deal to sell two 
Hong Kong land parcels to Henderson Land Development Co 
 0012.HK  for $2 billion.  urn:newsml:reuters.com:*:nL4N1Q306U 
    In recent months, other HNA units including Bohai Capital 
and HNA Infrastructure have pledged company shares to raise 
capital as the conglomerate seeks to alleviate strains caused by 
a $50 billion acquisition spree. 
    Many of HNA's listed companies are also known to have  
pledged shareholdings as collateral to leverage assets in the 
past few years. 
    HKICIM said in a filing it had pledged the shares on Feb. 14 
but did not disclose terms of the deal. Based on its Feb. 14 
closing price, a 41 percent stake would have been valued at 
about HK$3.1 billion ($392 million). 
    While levels of borrowing by share pledging do vary, 
typically lenders advance funds worth 30 percent of the shares 
pledged. 
    The HNA unit said it may pledge more shares as collateral to 
PAG if the loan-to-value ratio falls below a prescribed 
threshold. A spokesman for PAG declined to comment. 
    ($1 = 7.8248 Hong Kong dollars) 
 
 (Reporting by Donny Kwok Editing by Sumeet Chatterjee and 
Edwina Gibbs) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: HNA GROUP HKICIM GROUP/COLLATERAL