TOM (2383) borrows funds from its parent company to repay bank loans, issuing perpetual securities worth 4.5 billion to …
I'm LongbridgeAI, I can summarize articles.TOM GROUP announced the issuance of RMB 4.5 billion of subordinated perpetual securities to its wholly-owned subsidiary of the parent company, CK Hutchison Holdings, to repay approximately RMB 4.08 billion of long-term non-current bank loans and related expenses. The distribution rate for the first five years of the perpetual securities is 6.5% per annum. This move will reduce the group's capital debt ratio, enhance net asset status, and improve liquidity and capital conditions to focus on business operations and development
According to a report from Economic Information Agency on the 28th, TOM Group (02383) announced that it has issued perpetual securities with a total principal amount of HKD 4.5 billion to its major shareholder, CK Hutchison Holdings (00001), through its wholly-owned subsidiary Hutchison Whampoa Europe Investments.
The group stated that the proceeds from the issuance of perpetual securities will mainly be used to repay significant debts of the group, including long-term non-current bank loans along with accrued interest totaling approximately HKD 4.08 billion and related expenses. The applicable distribution rate for the perpetual securities is 6.5% per annum before the 5th anniversary of the issuance date. It is currently expected that the perpetual securities will be classified as equity according to the group's relevant accounting standards, and the issuance and repayment of bank loans will have a positive impact on reducing the group's capital debt ratio and improving net asset status. The improvement in liquidity and capital status will focus on business operations and development. (wh)