Last Wednesday, Hainan Wenchang International Aerospace City Investment and Development entered a strategic cooperation framework agreement with the Bank of Hainan and Bank of Communications (Hainan branches) in China’s southernmost province of Hainan. According to a representative of the company, this is a prelude to closer cooperation between the three sides in the fields of key project and supply chain financing, settlement business, capital management, and more.

Home to both national and commercial satellite launch sites, Wenchang International Aerospace City was named one of the eleven key industrial parks in Hainan when China released the master plan for the Hainan Free Trade Port in June 2020. HAINAN DAILY

The partnership was formed under the guidelines of a document issued by local authorities earlier in June, which laid out ten specific measures to facilitate investment and financing for the key industrial parks on the island, said the company representative. The company and the two banks made a thorough study of all of the current and future projects in the park before reaching a consensus on how to pursue the financing of the project.

While the banks provide the company with favorable interest rates and an efficient financing approval procedure, the company plans to make full use of the funds to boost the development of the park. So far, the company has received a financing credit worth 2 billion yuan (about $300 million) from the two banks.