Letv signed a strategic agreement with China Merchants Bank on November 17 to receive a 10 billion Yuan (USD 1.57 billion) line of credit. The amount will be used for Letv's domestic and international businesses.
Rumored for eying the Indian Market, the capital obtained can facilitate Letv's internationalization move. The agreement was signed between Le Holdings, the group company of Letv, a listed internet conglomerate company in China, and the Shanghai Branch of China Merchants Bank.
According to the agreement, both sides will have cooperation in fields like general line of credit, finance consultancy, cash management, international business, financial leasing, and supply chain finance, and so on. China Merchants Bank will coordinate its overseas branches to provide Le Holdings and its subsidiary companies a comprehensive suite of finance services.
This 10 billion Yuan line of credit is the largest capital leasing amount Letv ever had and the seven eco-business lines of Letv, including internet, content, big screen, mobile phone, automobile, sports, and internet banking, will directly benefit from the cooperation.
Established in 2004, Letv evolved and diversified to become an icon amongst Chinese companies. Started by its two founders, Jia Yueting and Liu Hong, in a small office in Beijing, the company today is expanding its businesses globally providing global audiences a chance to experience disruptive technology at its best. With a current staff of nearly 10,000 employees, and presence in Beijing, United States and Hong Kong, the company has grown into a multinational organisation with a listed value of more than 93 billion Yuan ($14.6 billion).
China Merchants Bank is China's first joint-stock commercial bank, and one of the world's top 100 banks. The bank group owns licenses like commercial banking, financial leasing, fund management, life insurance, overseas investment banking and so on. Its net capital is more than 360 billion Yuan (US$56.5 billion), and general assets are more than 4,700 billion Yuan (US$738 billion).