Unilever, 3M on list of firms eligible for China loans to ease coronavirus crisis
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
MONDAY, MAY 23, 2022
MONDAY, MAY 23, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Unilever, 3M on list of firms eligible for China loans to ease coronavirus crisis

Global Economy

Reuters
19 February, 2020, 03:10 pm
Last modified: 19 February, 2020, 03:22 pm

Related News

  • Shanghai reopens some public transport, still on high Covid alert
  • Shanghai district to require all shops to shut, residents to stay home
  • Shanghai inches towards Covid lockdown exit, Beijing plays defence
  • Shanghai detects new infections after five days of 'zero Covid'
  • Indonesia to drop outdoor mask mandate as Covid-19 infections drop

Unilever, 3M on list of firms eligible for China loans to ease coronavirus crisis

Companies producing medical supplies and which are "backbone enterprises" providing daily necessities are eligible for the special loans, according to a notice on the Shanghai MIIT's website

Reuters
19 February, 2020, 03:10 pm
Last modified: 19 February, 2020, 03:22 pm
Photo: BSS
Photo: BSS

Shanghai has compiled a list of firms, including local units of multi-nationals Unilever PLC and 3M Co, as eligible for millions of dollars in subsidised loans to ease any blow from the coronavirus outbreak, according to bankers and documents seen by Reuters.

In an economically bruising three weeks, China has cordoned off cities and suspended transport links in an effort to slow the spread of the virus.

Some lenders in the city have each received a list of firms compiled by the Shanghai branches of the Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission (NDRC), according to seven bankers, each at a different lender.

"Every bank in Shanghai is rushing to lend to the companies on its list, to earn political goodwill," said one banker who had seen a list with 194 firms, including restaurant operators and property developers.

Other lenders have received shorter versions of the list, bankers said.

Companies have the option to nominate themselves to be added to the overall list. Each lender then determines independently whether to approach a company on its list and offer finance, according to the bankers.

Companies producing medical supplies and which are "backbone enterprises" providing daily necessities are eligible for the special loans, according to a notice on the Shanghai MIIT's website.

China is trying to deal with a nationwide shortage of medical supplies, from face masks to protective suits, while hospitals in central Hubei province - the epicentre of the outbreak - struggle to manage hundreds of new cases a day.

One bank's list of firms reviewed by Reuters included 3M Medical Devices and Materials Manufacturing (Shanghai) Co Ltd, Unilever (China) Co Ltd as well as medical supply firms Shanghai Kindly Enterprise Development Group Co Ltd and Tellgen Corp.

There is no indication from the list that loans offered will necessarily be sought, or that such firms are in any financial need.

The Bank of Shanghai Co Ltd told Reuters it will lend 5.5 billion yuan ($786 million) to 57 firms on its list.

So far, 430 million yuan of that has been drawn down at an average interest rate of 2.65%, the bank said. With subsidies, the borrower only pays 1.32%, it said.

Under a similar programme in Beijing, companies sought bank loans totalling at least $8.2 billion, Reuters reported earlier this month.

The aim of the loans is to ensure financial support to key companies helping prevent and fight the epidemic, the Shanghai government notice said.

Shanghai authorities are compiling the list to help the central bank, the People's Bank of China (PBOC), funnel 300 billion yuan of cheap loans to virus-hit companies nationwide.

Shanghai-based medical equipment manufacturer Derlar, on a list seen by Reuters, put its name down for financing last week, said a person surnamed Shen in Derlar's finance department, adding the firm had not yet received any money.

Shanghai Kaibao Pharmaceutical Co Ltd, on the same list, said it had not yet received a loan, in response to Reuters' questions about its application. A person surnamed Ren in the firm's finance department added it will provide more details if money is received.

Banks which have received a list of potential borrowers include the Shanghai branches of Ping An Bank Co Ltd , China CITIC Bank Corp Ltd, China Guangfa Bank Co Ltd, China Merchants Bank Co Ltd , Shanghai Huarui Bank and the Bank of Ningbo Co Ltd , according to people working at those lenders, who declined to be named as they were not authorised to speak to the media.

The lenders, MIIT, NDRC and PBOC did not respond to requests for comment from Reuters.

A spokeswoman from Unilever said it had "no current plans to apply for any financing support".

3M and other companies listed including Shanghai Kindly Enterprise Development Group and Tellgen did not respond to requests for comment.

No Interest

One Shanghai-based face mask manufacturer on the list will not pay any interest on a loan from the Shanghai branch of the Bank of Ningbo if government subsidies are taken into account, said a person with direct knowledge of the matter.

Shanghai Roche Pharmaceuticals Ltd, a unit of Swiss drug firm Roche Holding AG, was also on a loan list seen by Reuters. A spokesman for the firm said "the company did not apply for any loans".

After banks make the loans, they can then claim more funding from the central bank, according to the PBOC's website.

China has issued more than 1,600 force majeure certificates to shield companies from legal damages arising from the coronavirus outbreak, state news agency Xinhua reported on Tuesday, an indication of difficulties faced by Chinese firms.

World+Biz / Top News

Unilever PLC / Shanghai / Coronavirus impact / Coronavirus in China / corona virus / Coronavirus / PBOC / The People’s Bank of China (PBOC)

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • File photo of Square Pharma factory
    Square Pharma fire yet to come under control: Fire service
  • File Photo: State Minister for Power, Energy and Mineral Resources Nasrul Hamid/UNB
    Russia has offered to sell crude oil to Bangladesh: Nasrul
  • Photo: BBC
    Ukraine court jails Russian soldier for life in war crimes trial

MOST VIEWED

  • A Russian rouble banknote is placed on euro banknotes in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
    Rouble firms, heading back towards multi-year highs vs dollar, euro
  • US President Joe Biden arrives aboard Air Force One at Yokota US Air Force Base in Fussa, on the outskirts of Tokyo, Japan May 22, 2022. REUTERS/Kim Kyung-Hoon
    Biden's Asia economic talks include 13 countries, no China
  • U.S. President Joe Biden discusses the United States' response to Russian invasion of Ukraine and warns CEOs about potential cyber attacks from Russia at Business Roundtable's CEO Quarterly Meeting in Washington, DC, U.S., March 21, 2022. REUTERS/Leah Millis
    Biden says weighs reducing tariffs on China, asking OPEC to pump more oil
  • A man rides his trishaw loaded with empty plastic barrels which are used to carry oil in the western Indian city of Ahmedabad March 10, 2011. REUTERS/Amit Dave/Files
    Oil prices at $110/barrel pose 'bigger threats' than inflation, says India's oil minister
  • People shop for cooking oil made using palm oil at a supermarket in Jakarta, Indonesia, March 27, 2022. REUTERS/Willy Kurniawan
    Indonesia set to resume palm oil exports but policy uncertainty persists
  • The logo of the upcoming World Economic Forum 2022 (WEF) is pictured on a window at the congress center, in the Alpine resort of Davos, Switzerland May 21, 2022. REUTERS/Arnd Wiegmann/File Photo
    General Atlantic plans $2 billion investment in India, Southeast Asia

Related News

  • Shanghai reopens some public transport, still on high Covid alert
  • Shanghai district to require all shops to shut, residents to stay home
  • Shanghai inches towards Covid lockdown exit, Beijing plays defence
  • Shanghai detects new infections after five days of 'zero Covid'
  • Indonesia to drop outdoor mask mandate as Covid-19 infections drop

Features

Musk is denying the sexual harassment allegation that surfaced this week. Photo: Bloomberg

Elon Musk’s crazily banal week 

1h | Panorama
Asus Zenbook 14 Flip OLED: A touch of brilliance to your life

Asus Zenbook 14 Flip OLED: A touch of brilliance to your life

5h | Brands
Keep your phone by your side with this armband

Keep your phone by your side with this armband

2h | Brands
Are Focallure gel masks worth the hype?

Are Focallure gel masks worth the hype?

3h | Brands

More Videos from TBS

Photo: TBS

Can Sri Lanka bounce back?

5h | Videos
How to apply for a job at Oxfam

How to apply for a job at Oxfam

6h | Videos
Investors, public to suffer from electricity price hike

Investors, public to suffer from electricity price hike

18h | Videos
Health benefits of summer fruits

Health benefits of summer fruits

19h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

3
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

4
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

5
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

6
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab