Country Garden Holdings secures refinance loan from a private lender

If sourced are to be believed, Country Garden Holdings, a major real estate developer in China, has secured a loan of HK$900 million ($114.65 million) from a private lender to refinance a bank loan. The loan, extended by Flow Capital (HK) Ltd, an investment firm based in Hong Kong, will primarily be used to repay a Hong Kong loan owed by Country Garden’s subsidiary, amounting to around HK$700 million.

The recently obtained loan will have a duration of two years and will be supported by guarantees from Country Garden’s publicly listed parent company and a property in Hong Kong. The interest rate charged by the lender has not been disclosed. This loan comes after Country Garden reported its first net loss since going public in 2007, due to the challenges faced by China’s property sector, including a debt crisis and slow sales.

Last week, Bloomberg published a report confirming Country Garden has received the loan. However, the company has not released any official statement regarding the same. Upon the news being published, the company’s shares dropped by 2%, resulting in a total decline of around 60% over the past year.

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Country Garden Holdings secures refinance loan from a private lender

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