Fosun has flexibility to replenish cash and has adequate resources to manage debt maturities

HONG KONG


,


June 24, 2022


/PRNewswire/ — Fosun International Limited (HKEX stock code: 00656, “Fosun International”)

received S&P Global Rating’s latest report published yesterday, where it points out

that Fosun has adequate resources to meet its upcoming debt maturities over the next six to 12 months

and


that it believes the company could

rely on asset monetization and stable banking relationships to manage its liquidity.

According to Fosun International’s 2021 annual report, Fosun International has a sound and healthy financial position. As of the end of 2021, the total debt to total capital ratio dropped to 53.8%; the average cost of debt was at a historically low of 4.6%; cash, bank balances and term deposits reached

RMB96.78 billion

. In terms of cash and debt management, Fosun has always adhered to the principle of proactive management of maturing debts and continuous optimization of debt structure, and has built financing capabilities with diversified financing channels and wide recognition from the market. The Group and its subsidiaries have established partnerships with more than 100 Chinese and foreign banks around the world and have signed strategic cooperation agreements with many international banks and multiple Chinese banks. Facing the volatility of the public market, Fosun made full use of its diversified financing channels to maintain stable liquidity.

On

22 June 2022

, Fosun International announced an update on outstanding tender offer to accept Any-and-All for full outstanding principal amount of its only two offshore bonds maturing this year. The two offshore bonds are FOSUNI 5.5%

2023 US dollar

bond puttable in August this year, at the amount about

USD380 million

, and  Euro bond FOSUNI 3.3% 2022 maturing in October this year, at the amount about

EUR384 million

. These two bonds are the Company’s only maturing offshore bonds this year. The expiration deadline is

4 July 2022

and the purchase price of these two bonds is redeemable at 100% of face value.

S&P Global Rating said the current market sentiment toward high-yield privately-owned enterprise (POE) issuers in both onshore and offshore markets is weak. Fosun’s tender offer on 22 June to repurchase all offshore notes due this year (totaling about

US$800 million

) reflects its efforts to ease recent market skepticism. S&P Global Rating believes that Fosun can use secured debts, bank borrowings, as well as asset sales to settle the maturities. S&P Global Rating believes Fosun can well manage its maturities and expects Fosun’s offshore and onshore bank facilities will increase this year, and the company’s banking relationships are unlikely to be hit in the near future. In addition, S&P Global Rating believes Fosun’s considerable asset scale with a global presence, its diversified investment portfolio and ability to strike a balance between investments and divestments, could offer Fosun’s flexibility to recycle assets and replenish cash.

On

8 June 2022

, S&P Global Rating published a report, maintaining Fosun International outlook as “Stable”; and affirmed “BB” on Fosun International’s long term issuer credit rating and its guaranteed senior unsecured debt. In view of the recent volatile market environment, S&P Global Rating maintained “BB Stable” credit rating to Fosun, demonstrating its affirmation on Fosun’s efforts in debt management and endogenous growth strategy.

Fosun has been steadfastly fulfilling its mission of “creating happier lives for families worldwide”, strengthening its presence in four business segments: Health, Happiness, Wealth and Intelligent Manufacturing. It is also one of the few companies in

China

which has global operation and investment capabilities and has built up a solid technology and innovation capabilities. In the face of the volatile epidemic situation and many external uncertainties, Fosun maintained a stable leverage ratio, high risk tolerance with its multi-currency debts and stable debt maturity, maintaining a healthy financial position.

In the future, Fosun will protect itself against market risk with a diversified business portfolio, a global asset presence, and the “Profound Industry Operations + Industrial Investment” strategy, and will continue to adhere to strict financial and capital management systems, further consolidate the Company’s capital foundation, and grasp opportunities amid global market fluctuations and changes, thereby making solid yet bold progress for its growth and development.

About Fosun

Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth, and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). In 2021, Fosun International’s total revenue was

RMB161.3 billion

and total assets amounted to

RMB806.4 billion

. Fosun International ranks No.589 on the 2022 Forbes Global 2000 List, with a MSCI ESG rating of AA.

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SOURCE Fosun