China Jinmao Holdings Group Ltd.'s unit signed a new framework agreement with two of its shareholders relating to a provision in an entrusted loans deal that was entered into by the trio in June 2014.
As the original agreement is set to expire June 24, Jinmao Investment (Changsha) Co. Ltd. agreed to continue providing entrusted loans to Shanghai Jinmao Economic Development Co. Ltd. and Changsha CSC Investment Co. Ltd.
Under the new framework, which will be effective June 25 with a three-year term, Jinmao Changsha will appoint a financial institution to provide the entrusted loans to Jinmao Development and CSC Changsha. The amount of the loans will be proportional to the respective shareholding the two companies hold in Jinmao Changsha, subject to interest rates.
The company said the provision of loans by Jinmao Changsha to its shareholders can decrease the amount of idle cash it holds, and meet the development and financial goals of the group.