CH TIANBAO GP (01427) announced that the company intends to enter into a corporate guarantee agreement to provide a guarantee of up to RMB 800 million to China Construction Bank Corporation Huailai Branch (the Bank). The guarantee is intended to ensure the proper fulfillment of obligations by its wholly-owned subsidiary, Huailai Tianbao Health Care Services Co., Ltd. (Huailai Health Care), as the borrower, under a bank financing agreement (Financing Agreement) with the Bank as the lender.
The Bank has granted a long-term loan maturing in July 2041, with an interest rate set at the China Loan Prime Rate minus 60 basis points. The annual repayment amount is determined based on the business development of Tianbao Jingbei Health City.
The board of directors believes that entering into the Financing Agreement and providing the guarantee will facilitate favorable financing resources for Huailai Health Care's business operations, enhancing its cash flow management and supporting the development of Tianbao Jingbei Health City.