Jiangsu Leili secures $4M loan to fund share buyback

What's the deal? Jiangsu Leili MotorDealroom has a profile for this one. Try Dealroom → said on September 8 that it received a loan commitment letter from China CITIC Bank's Changzhou branchDealroom has a profile for this one. Try Dealroom →. The bank agreed to provide a special credit line of up to 27 million CNY (about $4 million) for the company's share repurchase.

The fine print: The loan covers no more than 90% of the funds actually used in the buyback, with a term of up to three years. It is earmarked solely for repurchasing company shares.

Why now? Jiangsu Leili had previously planned to fund the buyback with its own or self-raised money, allocating no less than 20 million CNY and no more than 30 million CNY. The repurchase price is capped at 35 CNY per share.

The signal: The financing sits at the small end of the market — in the bottom percentile by size — but reflects a wider trend of Chinese banks extending dedicated loans to help listed companies fund share buybacks.

Image credit: Generated with Gemini