Finance company employs financial investment tools for first time to solve financing difficulty

Source:Finance CompanyTime:2017-04-24

On April 19, Finance Company issued the first tranche of intermediate fund (RMB 97.5 million) to drive the placement of other funds, marking that CCCC has successfully leveraged the project of Qingdao Subway Line 13 with a total investment of RMB 14,025 million.

The project has a capital base of some RMB 5,610 million (40 percent). Fund composition: preferred funds (59.5 percent), intermediate funds (25 percent) and ordinary funds (15.5 percent). As capital cost soared at the beginning of this year, all investors are under heavy financial pressure. At the time when there are less than 20 days from the deadline for the examination and approval of preferred fund investment, intermediate fund cannot be placed in a short period. If the first tranche of intermediate fund (RMB 97.5 million) is not in place prior to April 19, preferred funds will be re-examined, and the project will face the risk of stagnation caused by the uncontrollable deadline.

Amid the tight schedule, the company promptly organized an all-round survey on project background, risk assessment and the investment model, and made several rounds of communication and negotiation with the parties involved. By subscribing to trust products and designating a trust plan to subscribe to the funds of Line 13, the company completed the injection of intermediate-level fund prior to April 19, to solve the "first-kilometer" financing difficulty of Qingdao Subway. According to deployment, the company will also assist in the placement of CCCC's capital base of RMB 842 million in loan for the project.

It is the first time that the company has successfully employed financial investment instruments to invest in CCCC's projects for the first time since acquiring the investment qualification last November. It set an example for the company to support CCCC's investment projects through industry-finance integration in the future.