Hunan Cable Television Network (Group) Holding Co., Ltd, an affiliate of Hunan Broadcast & TV Media Corp, has obtained a combined CNY3.3 billion loan from China Development Bank, China Construction Bank Hunan Branch and Bank of China Hunan Branch for renovating and digitalizing the cable television network throughout Hunan Province.
The Hunan cable television digitalization project mainly covers five aspects of providing free set-top boxes to 4.3 million cable TV users of Hunan province; constructing one comprehensive service integration platform; building 15 city-level management systems; setting up 88 county-level sub-forefront terminal systems; and upgrading and renovating the 6000 kilometers of radio and broadcasting backbone network.
According to a feasibility report released by Hunan Broadcast & TV Media Corp, the company's cable network business is expected to see an annual increase of business revenue of CNY1.514 billion and annual profit increase of CNY316 million after the network conversion.
HCTNHC signed the 15-year loan agreement, which is reportedly the largest long-term loan ever granted to a Chinese domestic cultural enterprise, with the three banks on June 20. The interest rate of the loan will be the same with that of the People's Bank of China's normal interest rate and it will not float upward subject to market changes.