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Acquisition-Focused Fosun Forms Strategic Pact With HSBC
Tom Burroughes
27 March 2018
as part of its growth plans. Late in November, Fosun raised $300 million via the issue of a senior guaranteed bond with a three-year maturity. Proceeds are being used to refinance some existing debts and for working capital and general corporate purposes. It was assigned a credit rating of BB (stable) by S&P Global Ratings.
The agreement has been signed by Wang Qunbin, chief executive of Fosun International and Stuart Grant, vice chairman, commercial Banking of HSBC (Asia-Pacific), at Fosun’s Shanghai headquarters.
The group, which owns companies across a number of sectors, has bought non-domestic wealth and asset management firms as part of its strategy. At the start of March, for example, Fosun bought Brazilian asset manager Guide Investimentos for $52 million; it has purchased Hauck & Aufhäuser, the venerable German private banking and financial firm, for example.
In 2015 Fosun launched a financial platform for its investment and asset management business in Russia and neighbouring countries. Fosun was founded in 1992, and its activities span a variety of sectors, including financial services and wealth management. Not all of its bids have been successful; in 2015 it pulled out of an attempt to acquire BHF Kleinwort Benson.
“According to the agreement, HSBC will provide Fosun with a range of worldwide financial services, including corporate financing services, cash management and settlement services, global capital market operations, and various market risk hedging services,” Grant said.