CapitaLand boosts credit limit allocation in China units to S$10b

Deal is already sealed.

According to a release, CapitaLand Limited announced that it has entered into strategic co-operation agreements with Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB) and Industrial and Commercial Bank of China (ICBC) to grant a credit limit allocation of up to RMB50 billion (about S$10 billion) to CapitaLand Group’s China businesses.

The allocations would enable CapitaLand and the banks to enter into definitive agreements to draw on the credit limit, if required, subject to terms and conditions to be mutually agreed.

Mr Liew Mun Leong, President & CEO of CapitaLand Group said: “We are very pleased with the strong support that we are getting from the four Chinese banks. The strategic co-operation agreements with a credit allocation of up to RMB50 billion will provide funding for the Group’s growth plans in the residential, commercial, retail, serviced residence, integrated developments and financial services sectors across China.”

Over the years, CapitaLand has grown into one of the top foreign real estate companies in China with a diversified portfolio comprising homes, offices, shopping malls, serviced residences and mixed developments. As at 30 September 2012, 38% of CapitaLand’s total assets (excluding treasury cash) amounting to S$13.0 billion are in China.

Since January 2012, CapitaLand has committed S$3.0 billion of new investments. Singapore and China account for the bulk of the new investments.