HNA Group's One-year Deferred Payment of "13 HNA Bonds"

The main business operations of HNA Group in the aviation, tourism, hotel and commerce sector have been greatly affected by the COVID-19 epidemic. Despite efforts to promote the resumption of production, in the short term, it is still difficult for HNA to catch up with the same period of last year, the cash flow pressure is huge.

In order to properly cope with the impact of the epidemic and maintain the sustainable operation of the enterprise, HNA Group issued a notice which says it means to negotiate with the bond investors of "13 HNA Bonds", which is due on April 15 this year, on the delay payment of principal and interest for one year.

Later the meeting of HNA bond holders passed the proposal of deferred payment of principal and interest until April 15, 2021 despite of some complaints about the meeting procedure.

The issuer of "13 HNA Bonds" is HNA Group Co., LTD., a local state-owned enterprise. The interest date is April 15, 2013 and the maturity date -- April 15, 2020. The lead underwriter of "13 HNA Bonds", currently rated AAA, is Anxin Securities.

The issuance scale of "13 HNA Bonds" is 1.15 billion yuan, of which 750 million yuan is reported to be used for HNA Capital Airlines, a wholly-owned subsidiary of HNA Group, to introduce three shipsets of Boeing B737-700IGW business jet and 400 million yuan to introduce two Airbus A320 aircraft. The stated interest rate is 7.1%.