NZX allows Richina to borrow US$5m to fund Chinese ventures

Richard Yan says the money will refinance the Shanghai facility. Picture / Kenny Rodger

Richina Pacific will borrow US$5 million ($7.9 million) from one of its owners to finance Chinese investments.

Registered in Bermuda, based in Malaysia and listed here, Richina was granted the waiver by the New Zealand Stock Exchange so it could raise the money for what it called short-term urgent funding requirements.

Richina owns Mainzeal Property & Construction, one of this country's largest builders. It sought the waiver to enter a related party transaction to borrow US$5 million from its majority shareholder Richina Enterprise Holdings for up to 90 days.

Richina Enterprise owns 39 per cent of Richina Pacific, which had expected to get the loan from another source by the first week of May. Richina Enterprises had previously provided money to Richina Pacific for working capital requirements.

Richina's chief executive, Richard Yan, said yesterday that the deal had nothing to do with its New Zealand operations and was only for its Chinese ventures.

"It's to refinance our Shanghai facility," he said.

Richina's Chinese investments include large property holdings, a leather operation and an aquarium.

Mainzeal is building the Vector Arena in Auckland's Quay Park, a project described last month by Richina chairman John Walker as "an outstanding public facility that all of its citizens can be proud of, designed and built to high standards and an advanced design by Mainzeal and its dedicated employees and subcontractors.

"While there has been much publicity surrounding the financial losses on this project, nothing has compromised the quality of this project. Vector Arena is a world class facility that will be utilised for many generations to come."