Guangzhou R&F Properties Co. Ltd. agreed to guarantee 25% of an indirect subsidiary's two loans amounting to a total of 7.5 billion Chinese yuan.
The company will serve as a guarantor of Tianjin Jinnan Xincheng Real Estate Development Co. Ltd. along with three other shareholders in both loans to be secured from Guodu Securities Co. Ltd. through the Beijing branch of the Bohai Bank Co. Ltd.
The first loan, worth 4.5 billion yuan, borrowed Nov. 23, 2016, was used by Tianjin Jinnan to fund a development project in Tianjin, China, and for the repayment of shareholders' loan.
The second loan, borrowed March 28 and worth 3.0 billion yuan, was used to provide additional funding for the Tianjin project.
The company indicated in a filing that it will use internal group resources to pay for any amount that will become due and payable under the conditions of both loans.
As of March 27, US$1 was equivalent to 6.88 Chinese yuan.