Beijing Capital Land (HKG:2868) announced that it has entered into a trust related investment arrangement with Huaneng Trust Limited to execute the Main Agreements (comprising the Equity Income Right Investment Contract and the Debt Settlement Agreement), pursuant to which Huaneng Trust shall invest a sum of not more than RMB400 million into the income rights of Beijing Capital Land's 100% equity interest in Beijing Litong Shangyi Investment Company Limited (Litong Shangyi).

In return and subject to the terms and conditions of the Main Agreements, Beijing Capital Land shall pay by instalments to Huaneng Trust during the investment period the income generated from the income rights of the Litong Shangyi shares of which the total payment amount shall not be less than the total capital sum invested by Huaneng Trust.

Subject to the terms of the Main Agreements, it is the current intention of Beijing Capital Land that the sum received under the Huaneng Trust shall be used as general working capital. The board considers that the transactions contemplated under the agreement shall enable the group to enlarge the existing financing channels by raising funding from trust company, enhance the cash flow position and help to maintain its strong liquidity position.

Source:chinesestock.org