Lancang Tea taps Agricultural Bank of China for RMB24.3M loan

What's the deal? Lancang Tea (06911.HK), the Hong Kong-listed Chinese tea company, has secured a term loan facility of up to RMB24.3 million (roughly $3.3M) from Agricultural Bank of ChinaDealroom has a profile for this one. Try Dealroom →. The loan has a tenor of one year.

The signal: Lancang Tea is classified as a mature, vertically integrated Pu'er tea producer, so this one-year facility likely serves working capital needs rather than growth ambitions. Agricultural Bank of China, acting here in a corporate lending capacity, has deep roots in agri-business financing — its involvement signals that traditional Chinese specialty food and beverage producers continue to find ready access to state-backed credit even amid a sluggish consumer environment.

Read more: aastocks.com