Kenon Holdings Ltd. (NYSE: KEN; TASE: KEN) reported on Friday that it was injecting more cash into its loss-making Chinese car venture Qoros, together with its Chinese partner in the venture, vehicle manufacturer Chery.
Kenon, controlled by Idan Ofer, reported that it and Chery would inject a further $86 million into Qoros, in equal shares, and that each of the partners would provide guarantees of $28 million to the venture.
Kenon will finance the cash injection with its own cash and with a $200 million credit line from Israel Corporation. So far, Kenon has drawn $110 million of this credit line.
In addition, Kenon agreed to give a $118 million guarantee to Qoros to bring the level of its guarantees to equality with those provided by Chery, amounting to $251 million, against the total credit taken by Qoros to date of $472 million. This additional guarantee is conditional on a further owner's loan of $31 million from Chery to Qoros, under the agreement between Kenon and Chery for equal responsibility for financing the venture.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2015
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