Xiamen Airlines has entered into an agreement with ICBC, to provide CNY800 million ($120.5 million) in loan guarantees for Hebei Airlines’ borrowings.
Hebei’s loans with the bank are for local and foreign currency borrowings, as well as a foreign exchange loan contract, says Xiamen’s parent China Southern Airlines in a stock disclosure.
China Southern says the guarantees take into account Hebei’s operation and development needs, and will also help to broaden its financing channels and reduce financing costs.
In the disclosure, China Southern also detailed that Hebei recorded a revenue of CNY782.9 million for the first six months of the year. Net profit meanwhile soared to CNY84.2 million, from CNY13.7 million the same time last year.
Total liabilities as of 30 June stood at CNY2.02 billion, higher than the CNY1.95 billion at the end of 2015.