China Merchants Bank gives Cosco 300m yuan credit line

PUBLISHED : Thursday, 28 August, 2014, 9:05am
UPDATED : Thursday, 28 August, 2014, 9:05am

China Merchants Bank is granting a 300 million yuan (HK$378 million) credit line to its second-largest shareholder, China Ocean Shipping (Group) Co (Cosco), the lender said in a statement to the Shanghai Stock Exchange.

The credit facility is valid for three years to the company and its subsidiaries. Cosco is China’s largest shipping and logistics conglomerate.

With a 6.24 per cent stake, Cosco is the second-largest shareholder of China Merchants Bank after its parent, China Merchants Group.

Last year, Cosco recorded 164.81 billion yuan in revenue and 3.96 billion yuan in net losses. Its total assets stood at 341.84 billion yuan and equity at 137.27 billion yuan, the statement showed.

The bank also said it had received regulatory approval to appoint Cosco group chairman Ma Zehua as vice-chairman. Wei Jiafu, Ma’s predecessor, was the bank’s vice-chairman until he retired last year.