HONG KONG, Nov 24 (Reuters) - Chinese conglomerate HNA Group said it had repaid part of a HK$3.5 billion ($448 million) loan, while obtaining lenders’ consent to extend the remainder’s maturity.
HNA, facing a slew of repayment obligations amid rising financing costs, said it had repaid HK$700 million ($90 million) of the one-year bridge facility and reached an agreement with lenders to extend the facility’s maturity to Feb. 23, 2018.
The loan, which partly funded the group’s first land purchase in Hong Kong, would come due on Nov. 24.
The loan extension should help ease some of the pressures being faced by the firm after Beijing asked banks earlier this year to review their credit exposure to a handful of domestic companies, including HNA.
The group has been on a debt-fuelled acquisition spree, spending $50 billion over the past two years, sparking closer scrutiny of its opaque ownership and use of leverage.
Bank of East Asia, Nanyang Commercial Bank and Chong Hing Bank provided the bridge loan as original lenders, which funded HNA’s purchase of a land plot in Kai Tak, an urban redevelopment project in Hong Kong.
The company added in an emailed statement that it had secured sufficient capital to support the project development, and that it would proceed as planned. (Reporting by Yan Jiang of Basis Point, writing by Kane Wu; Editing by Himani Sarkar)