Hong Kong Shanghai Alliance (HKG:1001) said its unit Top Bloom will contribute 32.5 million yuan to associate Skyline Holdings as part of a 650 million yuan shareholder loan arrangement with joint venture partner Apollo, according to a Sept. 26 Hong Kong bourse filing.

Shares of the firm were down nearly 4% in Monday's late-morning trade.

The interest-free loans, due by Nov. 30, will be used to repay Skyline's bank borrowings and will be funded from the group's internal resources.

Skyline is 5% owned by Top Bloom and 95% by Apollo.

The company said the move will help reduce interest expenses and strengthen Skyline's capital structure.