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Hainan to issue $987 mln in commercial mortgage-backed securities for tourism sector

The securities will be jointly implemented by Tebon Haitong, Haitong Zhengquan, Guotai Junan Securities and CITIC Securities

SANYA, April 1. /TASS/. China's Fosun Tourism Group (part of Fosun International) announced that it will issue of 7 billion yuan ($986.9 million) worth of commercial mortgage-backed securities (CMBS) to draw investment to its tourism business. According to the Hainan Daily, this is the first time in China when securities were issued to support the tourism industry.

The Sanya Atlantis hotel and its water park (both owned by the group) will serve as collateral for the commercial mortgage-backed securities. Moreover, the pledge of the CMBS consists of 100 percent equity interest in Hainan Atlantis Commerce and Tourism Development Co Ltd (the parent company of Sanya Atlantis), as well as the operating revenue and accounts receivable of Sanya Atlantis. The term of the CMBS is 24 years. The prioritized CMBS is valued at 6.8 billion yuan (about $958 mln), with a coupon rate of 5% and 48 installments, and payments will be made once every six months. The securities will be jointly implemented by Tebon Haitong, Haitong Zhengquan, Guotai Junan Securities and CITIC Securities. 

Fosun opened Atlantis Sanya hotel in 2018. The facility includes a hotel, a water park, the world's largest open-air aquarium, dolphinarium, numerous restaurants and retail outlets. Some of the hotel's rooms are located underwater overlooking the aquarium.

The hotel's aquarium accommodates more than 13.5 million liters of sea water and is home to 86,000 fish and sea creatures, including sharks and stingrays. Visitors and hotel guests are also offered to try scuba diving.

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