China Eastern to raise CNY3.62bn to repay loans

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China Eastern Airlines shareholders have approved a proposal to raise funds via a non-public share issue.

The SkyTeam alliance member says it will raise yuan (CNY) 2.29 billion ($368 million) by issuing shares to China Eastern Group and China Eastern Jin Rong Holdings, and Hong Kong dollars (HK$) 1.62 billion ($209 million) by issuing shares to CES Global Holdings. All three are part of the airline's parent company, China Eastern Air Holding.

This will raise CNY3.62 billion in total and the funds will be used to repay loans and supplement its working capital, says the Shanghai-based carrier. This will also reduce its gearing ratio to 77.44% from 80.51%, it adds.