Zai Lab (HKG:9688) subsidiary Zai Lab (Shanghai) secured a revolving credit facility worth up to 300 million yuan with the Bank of Communications' (HKG:3328, SHA:601328) Shanghai branch (BOCOM), according to a Monday filing with the Hong Kong bourse.
The facility will be available until September 2025 to support the company's working capital in mainland China. Certain conditions are attached to the facility from BOCOM, including permission requirements from the lender before mergers and acquisitions, equity transfer, and provision of external guarantees exceeding 1.0 billion yuan, or increases in debt financings exceeding 1.5 billion yuan.
The loans will carry a maximum term of 12 months with rates initially linked to the one-year loan prime rate. Zai Lab's subsidiary has yet to benefit from the arrangement, the filing added.
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