Concord New Energy strikes $158.5m leaseback deal with industrial bank
I'm LongbridgeAI, I can summarize articles.Concord New Energy Group Limited has entered into a finance lease arrangement with Industrial Bank Financial Leasing for the purchase and leaseback of energy assets valued at approximately $158.5 million. The transaction involves leasing back assets from its subsidiary for 14 years, with quarterly payments based on a floating interest rate. Total estimated payments are $195.7 million. This deal is subject to shareholder approval under Hong Kong Listing Rules.
The lessee will make quarterly lease payments under a floating interest rate.
Concord New Energy Group Limited (CNE) has entered into a finance lease arrangement with Industrial Bank Financial Leasing involving the purchase and leaseback of energy assets worth about $158.5m (RMB840m).
The group said in a Singapore Exchange filing that Industrial Bank Financial Leasing will purchase the leased assets from Fengning Manchu Autonomous County Juting New Energy Development Co., Ltd., a wholly owned subsidiary of CNE, and lease them back for 14 years.
The lessee will make quarterly lease payments under a floating interest rate set at the market rate minus 0.25 percentage points.
Total lease payments are estimated at about $195.7m (RMB1.04b), assuming a market rate of 3.5%.
The transaction falls under Chapter 14 of the Hong Kong Listing Rules and requires shareholder approval.
(SG$1 = RMB5.30)