Through Mitsui Tousaburo's introduction, Xing Baohua met Ayame Morikichi, the chairman of JD First Commercial Bank.
The old man looked to be in his sixties, and was not very tall, about the same height as their emperor.
He wore a simple suit jacket without a tie, looked smart and had a smiling face, and was very polite.
According to materials provided by Mitsui Fujisaburo, JD.com's First Commercial Bank is relatively small in size, but its shareholders are all very powerful.
Its business model is similar to that of Huahong Bank, which was run by Xing Baohua.
It primarily provides high-quality services to large commercial clients, which may not be comparable to those of major banks, but the strength of its shareholders should not be underestimated.
After exchanging pleasantries, Ayame Senkichi said to Xing Baohua, "Don't you know what kind of cooperation Chairman Xing wants to discuss with our JD.com?"
"President Changpu, before we begin, please sign a confidentiality agreement. What we're about to say is very important," Xing Baohua said with a faint smile.
The old man nodded slightly and said "Hi!"
As if they've seen it all, this kind of pre-negotiation agreement signing is normal, they just don't encounter it often.
Ayame Moriyoshi signed both contracts and said, "Chairman Xing, may I speak now?"
"Okay! I want to pledge all of Nikon's shares to JD.com."
"How much is the collateral? How much capital do you need?" The old man frowned instead of being pleased.
"All shares, $11.7 billion."
After Xing Baohua finished speaking, Ayame Senkichi frowned even more, staring intently at Xing Baohua's expression, trying to see if he was joking.
No wonder the old man frowned; he felt this wasn't a good thing, and that a free lunch wouldn't just fall from the sky and land on his head.
Pies are great, but what if what comes next is a stone?
If we're talking about banks that partner with Xing Baohua, which one isn't bigger than their JD.com? How did they end up with this small, mediocre bank?
Could there be a trap here?
The old man asked cautiously, "President Xing, can you tell me why you chose our bank instead of the banks you've worked with before? You know, your credit and assets are the best in the eyes of bankers, without exception. If you need funds, just ask. It's only a little over 10 billion US dollars. You don't need to mortgage your shares. Just ask, and each bank can contribute a little."
"I want to give up Nikon and break away from Nikon."
"If you spread the word, I believe many people will be interested, and you'll earn more than if you mortgaged it to a bank?"
Xing Baohua knew the old man was right; the bank would suffer significant losses from mortgaging the shares and wouldn't be able to get a better price. When assessing risk, banks would also factor in the potential losses from the share's volatility.
Selling shares is different. If you find someone who wants to buy them, there's a possibility of a premium in addition to the stock price that day, and you can get more money than you would from a bank.
"Let me explain. First, using a bank we've worked with as collateral carries the risk of leaks. Second, I want this collateral to be permanent. That is, after the collateral is given to you, you can dispose of Nikon's shares according to the contract when the term expires. And I can give you a guarantee that after the collateral expires, Nikon's stock price will be 30% higher than the current stock price. If it doesn't reach that percentage, I will repay the loan normally and redeem my shares."
After listening to Xing Baohua's explanation, the old man quietly pondered.
Although Changpu Senji did not know why Xing Baohua wanted to use the mortgage, there were several clauses that were favorable to the bank.
He doesn't know how much Xing Baohua's shareholding percentage differs from the $11.7 billion, but the mortgage period is up, and if the 30% growth rate isn't achieved, Xing Baohua will have to redeem the shares. Either way, it's beneficial to JD.com.
This deal seems like a sure thing, a guaranteed profit.
"Mr. Xing, may I ask what you intend to do with this money?"
Xing Baohua smiled and said, "Your question is a bit too much. If I really need a reason, it's for cash flow. As you know, I have several listed companies and many unlisted companies, which require a lot of cash for working capital."
"From what we understand, the companies you currently own do not have significant losses and are all operating well," the old man asked.
"What do you mean? You don't want to provide me with a mortgage loan? No problem, there are plenty of banks that want to cooperate with me. To exaggerate a bit, the line could stretch from Ginza all the way to Dongjingwan!"
"I apologize for my bluntness. Many banks would be interested in a high-quality customer like yourself, and JD Bank is happy to serve you. We are a service-oriented bank; please feel free to contact us with any needs you may have. Our services are on par with any large international banking institution."
Regarding your question about the purpose of your funds, such as what you need to purchase, we can handle that for a small service fee.
Now that the topic of fees came up, Xing Baohua would be a fool if he still didn't understand. He laughed and said to Mitsui Fujisaburo, who hadn't spoken until now, "Mitsui Fujisaburo, I had a very pleasant chat with Chairman Ayame. Get some red wine or champagne."
The old man, being quite perceptive, suddenly said, "Why don't we just order some appetizers and sake?"
Xing Baohua quickly waved to Mitsui Fujisaburo, and after he left, Xing Baohua said, "Half of the 11.7 billion US dollars can stay in your bank, which will also save on exchange fees."
Changpu Senji nodded, and then Xing Baohua said, "You know that I make high-tech products and need more high-tech equipment. Some of the high-tech equipment is on the export ban list, and you have to help me get it."
The old man shook his head slightly and said, "I dare not give you any guarantees. I can only say that I will do my best. Ever since the Toshiba incident, the relevant departments have been very strict in controlling the products subject to the export ban memorandum."
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