CFIC Introduction
The "Hengxin Guoxing No. 636 - Kunming Infrastructure Investment Accumulative Capital Trust Plan", "Hengxin Guoxing No. 657 - Yingsheng No. 51 Accumulative Capital Trust Plan" (hereinafter referred to as "Hengxin Guoxing No. 657") and "Minmetals Trust No. 659 - Xindu No. 1 Accumulative Capital Trust Plan" entrusted by Minmetals Trust have expired.
Original title: Another trust company, suddenly overdue! Insiders responded
A number of Minmetals Trust's political and credit projects have been caught in a storm of delayed payment.
A reporter from the China Securities Journal learned on April 11 that the "Hengxin Guoxing No. 636 - Kunming Foundation Investment Accumulative Capital Trust Plan", "Hengxin Guoxing No. 657 - Win Sheng No. 51 Accumulative Capital Trust Plan" (hereinafter referred to as "Hengxin Guoxing No. 657") and "Minmetals Trust No. 659 - Xindu No. 1 Accumulative Capital Trust Plan" entrusted by Minmetals Trust have expired. Minmetals Trust insiders revealed to reporters that the above three products are all political and credit projects, and the financiers and guarantors are various urban investment companies in Kunming, Yunnan Province, and are currently making every effort to resolve risks.
Some government credit projects have been deferred
Among the above three products, an investor who purchased Minmetals Trust Hengxin Guoxing No. 657 said: "I bought 3 million yuan of the political credit product, and it is currently waiting for the trust company to deal with it." ”
The investor provided the reporter with the interim information disclosure announcement document issued by Minmetals Trust. According to the documents, Hengxin Guoxing No. 657 was established on May 27, 2022, and the current scale of existence is 85.8 million yuan. The trust scheme is expected to last no more than 24 months. All the funds raised under the Trust Plan are used to issue trust loans to Kunming Chenglu Development and Management Co., Ltd. (hereinafter referred to as the "Borrower") in accordance with the provisions of the Trust Loan Contract, and Kunming Industrial Development and Investment Co., Ltd. (hereinafter referred to as "Guarantor 1"), Kunming Urban Construction Investment and Development Co., Ltd. (hereinafter referred to as "Guarantor 2") and Kunming Xindu Investment Co., Ltd. (hereinafter referred to as "Guarantor 3", together with Guarantor 1 and Guarantor 2 hereinafter referred to as the "Guarantor") perform the Trust Loan Contract for the Borrower respectively The obligation under the project is to provide joint and several liability guarantees.
Image source: Courtesy of the interviewee
The reporter learned that the trust funds of the trust plan are used to issue working capital loans to Kunming City Road, and ultimately to purchase raw materials. The source of repayment is the operating income of Kunming Chenglu.
The reporter noticed that Kunming Industrial Development and Investment Co., Ltd., Kunming Urban Construction Investment and Development Co., Ltd. and other companies have been in the state of executors.
Image source: China Executive Information Disclosure Network
According to the Trust Loan Contract, the borrower shall pay the due principal and interest totaling RMB 27,443,600 to the trustee on October 14, 2023. However, the borrower failed to perform the payment obligation as agreed, and the guarantor also failed to perform the corresponding joint and several guarantee liability.
Actively communicate with counterparties
The announcement also shows that "the trustee continues to actively communicate with the counterparty. At the same time, on-site collection work was carried out on the relevant counterparties. However, as of the date of the announcement, the borrower has not paid the aforesaid principal and interest to the trustee, and the guarantor has not fulfilled the corresponding joint and several guarantee obligations. ”
"Although the risk of political credit projects increased in a short period of time in the second half of last year, the follow-up disposal and redemption situation was relatively good, but the payment was not necessarily timely. A trust researcher told reporters that it is also because of the pressure of debt and the decline in local land revenue, which has led to the failure of some non-standard political credit projects and overdue.
According to a research report previously released by Minsheng Securities, as of February 23 this year, there were 26 bond issuance platforms in Kunming, including 16 prefecture-level city platforms, 3 district and county-level platforms, and 7 state-level parks.
Tan Yiming, chief analyst of fixed income at Minsheng Securities, said that Kunming's economic strength as a whole ranks first in Yunnan Province. In line with the domestic macro environment, Kunming's land transfer fees have dropped sharply in recent years, affecting its ability to cover debt.
Source of this article: China Securities Journal
Author: Wu Yang
WeChat editor: Liu Sile
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