Hexindai (NASDAQ:HX), a China-based peer to peer lender, announced last week it has signed RMB 1 Billion Line of Credit agreements with both Ping An and Xiamen International Banks.
The company reported that Ping An Bank will provide a RMB 500 million line of credit with a term of one year while Xiamen International Bank will provide a RMB 500 million line of credit with a term of two years. The lines of credit will be used for general corporate purposes. Xinming Zhou, CEO of Hexindai, added:
“We believe these agreements reflect the vote of confidence from leading financial institutions in our business and long-term growth prospects. We will use the lines of credit to improve operational efficiency, expand advertising campaigns and for general corporate purposes which will help us reinforce our competitive advantage in China’s rapidly growing consumer lending marketplace.”
This agreement news comes just after the online lending platform announced the launch of its new nationwide Investor Education Seminar to introduce current and prospective investors to its business and educate them on its risk management systems, development strategy and insurance policies among other topics.