China Chengtong Unit Signs Sale-and-Leaseback Deal with Zhong'an United Coal; Shares Slip 2%

MT Newswires Live
Sep 15

China Chengtong Development Group (HKG:0217) said its leasing arm has agreed to a 350 million yuan sale-and-leaseback transaction with Zhong'an United Coal Chemical, according to a Sept. 12 Hong Kong bourse filing.

Shares of the property investor fell over 2% in morning trade Monday.

Under the three-year arrangement, Chengtong Financial Leasing will purchase coal-to-olefins production equipment from the lessee and lease it back, with total lease payments estimated at 370.2 million yuan.

The deal is expected to generate about 20.2 million yuan in interest income for the group.

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