Tricolor secures $13M loan pledge from CITIC to fund share buyback
What's the deal? Beijing Tricolor TechnologyDealroom has a profile for this one. Try Dealroom → has obtained a loan commitment letter of up to 90 million yuan (roughly $13 million) from China CITIC Bank's Nanchang branchDealroom has a profile for this one. Try Dealroom →, the company announced on September 8. The three-year facility can only be used to repurchase Tricolor's listed shares.
Why now? Tricolor had already flagged plans to buy back stock using its own or self-raised funds. The buyback is set at no less than 50 million yuan and no more than 100 million yuan, at a price capped at 173.61 yuan per share.
What's the endgame? All repurchased shares will be cancelled to reduce the company's registered capital. The CITIC pledge gives Tricolor external financing to back that commitment rather than drawing solely on cash.
The signal: The deal is a modest one by global standards — its size sits near the bottom of comparable rounds. But it reflects a growing willingness among Chinese banks to lend directly against buybacks, a mechanism regulators have encouraged listed firms to use to support share prices.
Image credit: Generated with Gemini
