China Merchants subsidiary guarantees 2bn yuan loan facility

China Merchants Shekou Industrial Zone Holdings' subsidiary Guangzhou China Merchants Real Estate will provide joint liability guarantee for a 2bn yuan credit facility from China Merchants Bank to Foshan China Merchants Baohua Real Estate.

Guangzhou Merchants will guarantee up to 1.02bn yuan, proportionate to its 51% equity stake in Foshan Merchants Baohua. The guarantee period extends three years beyond the main debt maturity.

China Merchants Shekou's total external guarantees now amount to 36.77bn yuan, representing 33.12% of the company's latest audited net assets.