ABC Offers its Strategic Partner, Evergrande Credit of RMB 20 billion

BEIJING, Feb. 6, 2015 /PRNewswire/ -- In new normal of the economy, rebound of nonperforming assets increasingly concerns banks, which drives the banks to be more fastidious in target client selection. A strategic cooperation agreement was made and entered into by the Agricultural Bank of China (ABC) and Evergrande Group in the headquarters of ABC on Feb. 6^th, marking the in-depth strategic cooperation between the Group and the Bank. An original report by Sina Leju follows:

According to the agreement, Evergrande will be offered a credit of RMB 20 billion, the highest line of credit ABC ever offered to a property developer, and the credit will cover fields of residence development, community finance and new urbanization construction. In addition, settlement service, cash management and financial support to the complete industrial chain will be involved in the cooperation between the Group and the Bank.

During the cooperation, Evergrande is rated as an important client of the Bank, and ABC develops effective cooperation with the Group in fields of property development and FMCG industry, such as mineral water, grain and oil, and milk powder, through giving a full play to its advantages in focus on agriculture, farmer and rural area development, interaction of urban and rural market, internationalization and diverse services.  

It could be observed from the agreement that both parties enjoyed remarkable advantages in the business they involved in, and the strategic cooperation between them would cover different fields, insider revealed.

Evergrande announced on the same day that sales in Jan. reached RMB 11.6 billion with a year-on-year growth of 5.1%, allowing the Group to be the only property developer enjoying year-on-year growth in sales in Jan. As data revealed, the housing market stayed flat in Jan., and the sales of Vanke in the month dropped by 16% on a year-on-year basis.  

The good performance and capital control make Evergrande a preferred target client for many banks. A strategic cooperation agreement was made and entered into by Postal Savings Bank of China (PSBC) and Evergrande three days ago, from which the Group was offered comprehensive credit of RMB 20 billion. At present, Evergrande has been offered credit of RMB 40 billion in total, which provides strong financial support to the development of the Group.

SOURCE Sina Leju