World News

China Cinda Asset offers about $1 billion liquidity support to Peking Founder: sources

BEIJING/SHANGHAI (Reuters) – China Cinda Asset Management Group <1359.HK> recently offered 8 billion yuan ($1.14 billion) worth of short-term liquidity support to Peking University Founder Group, two people with direct knowledge of the matter said on Wednesday.

The funds were provided last week, one of them said.

The liquidity support comes at a time when Peking Founder has received investor approval to extend the grace period to repay an overdue onshore China bond until Feb. 21, 2020.

It missed a payment deadline for 2 billion yuan worth of maturing short-term commercial paper on Dec. 1.

Sources have told Reuters that Peking Founder has already used up another 8 billion yuan it had previously borrowed from Cinda Asset, and that it still faced an average of 10 billion yuan of debt maturing each month.

Peking Founder and bad-debt manager Cinda, one of China’s four major asset management firms, did not immediately respond to Reuters requests for comments.

(Reporting by Zhang Xiaochong and Ryan Woo in Beijing; Writing by Winni Zhou in Shanghai; Editing by Muralikumar Anantharaman and Himani Sarkar)

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