SF Express Parent Seeks About $4 Billion Loan for Acquisitions

The parent of big Chinese courier SF Express is in talks with banks for a loan of around $4 billion for acquisitions, according to people familiar with the matter, who are not authorized to speak publicly and asked not to be identified.

The size of the facility for SF Holding Co. hasn’t been finalized, and the firm could opt to raise some of the funds through other methods, one of the people said. A company spokesperson did not respond to requests for comment made through WeChat message and phone.

SF Holding has been weighing multiple options to raise funds. Bloomberg News reported earlier this month the company is considering a second listing in Hong Kong, which could raise $5 billion, or hold an initial public offering there for SF Express. Shares of SF Holding have soared 115% this year in Shenzhen.

If SF Holding plans to finance future acquisition efforts with a loan, it would add to debt taken on for early 2019’s acquisition of Deutsche Post DHL Group’s supply-chain companies in Beijing and Hong Kong. Initial bridge borrowing for that deal was refinanced in September 2019 via a HK$5 billion ($645 million) five-year term loan.

©2020 Bloomberg L.P.

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