BEA agrees to buy four loans from shareholder for $1.18 billion

The Bank of East Asia (0023) said it has agreed to purchase four loans from its substantial shareholder for a total of HK$1.18 billion. 

The local lender plans to acquire the commitments, rights and obligations of the loans from Criteria Caixa’s CaixaBank, according to a filing on Wednesday. 

The considerations for the loans with maturities ranging from 2026 to 2030 will be paid by the BEA and its units by cash by internal resources.

The bank believes the transactions will enhance cooperation in loan financing business between BEA Group and CaixaBank and diversify its loan portfolio.

There will be no gain or loss incurred as a result of the transactions as the loans are to be transferred at considerations which were determined based on arm’s length basis with normal commercial terms, the filing said.

STAFF REPORTER