FOSUY - Fosun Repays US$700 Million Bond and Has No Significant US Dollar Bonds Maturing in the Next 12 Months

HONG KONG, July 4, 2023 - (ACN Newswire) - On 2 July, Fosun International repaid US$700 million maturing offshore US dollar bond, marking a significant milestone in its debt management strategy, as Fosun has effectively repaid all concentrated maturing offshore bonds in the public market. According to public information, since the beginning of this year, Fosun has successively repaid a US$450 million bond in January, a US$1.2 billion syndicated loan in April, and a EUR350 million bond in May prior to the recent US$700 million bond repayment. In addition, Fosun has completed the repayment of RMB6.7 billion maturing onshore bonds in the public market. As a result, Fosun has alleviated any near-term pressure associated with offshore debt repayment for the next 12 months.

Being a diversified and internationally active conglomerate, Fosun benefits from the inherent advantages of a well-balanced asset portfolio that can withstand industry-specific and market-specific downturns. Despite the challenges posed by the market environment, Fosun has leveraged its operational flexibility to monetize non-core and non-strategic assets in sectors such as steel making, and diversified financial investments. This proactive approach has generated substantial cash inflows, with Fosun successfully completing over RMB 40 billion in asset divestments in 2022 alone, resulting in nearly RMB30 billion of cash inflow. The successful redemption of maturing debts in 2023 underscores Fosun's consistent execution of its financial strategy aimed at divesting non-core assets.

In addition, Fosun has fostered enduring partnerships with domestic and international banks, enabling it to navigate the pace of asset divestments effectively. Domestically, benefiting from credit policies supporting the development of private enterprises, Fosun secured a syndicated loan for total credit line of RMB12 billion with eight major Chinese banks in January 2023. In the international market, Fosun has collaborated with more than ten domestic and foreign banks to execute a syndicated loan amounting to no less than US$500 million. These stable and robust financial relationships serve as a testament to the recognition of Fosun's financial strategy by both domestic and international financial institutions.

Looking ahead, Fosun will continue to implement its financial strategy of asset portfolio optimization, focusing on core businesses and streamlining the organization. This ongoing commitment is expected to yield continuous improvements in the company's credit metrics. In a report issued by S&P Global Ratings on 30 May, Fosun's determination in asset divestments and debt reduction was acknowledged, with a projection that the company will further reduce its interest-bearing liabilities and leverage within the next 12 to 18 months. As the short-term debt repayment peak is surmounted, Fosun's debt structure will significantly optimize. S&P Global Ratings report also highlighted the stable cooperation between Fosun and multiple banks, anticipating a substantial enhancement in debt stability as the proportion of bank loans in Fosun's liabilities increases, consequently mitigating capital structure risks. Fosun's diversified asset portfolio across different regions and industries, coupled with its prudent debt management practices, will effectively safeguard the company's resilience during economic downturns.




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