June 25, 2009
Yantai Raffles gets $150 million loan from China Development Bank
Yantai Raffles Shipyard Limited reports that it has signed a committed, three-year term loan facility with China Development Bank Corporation ("CDB"). The $150 million facility will be used primarily to retire more costly, existing bank debt and for working capital.
Mr. Mai Bo Liang, Chairman of Yantai Raffles' Board said "Two of the priority objectives of the company's current finance strategy are to establish and build upon key banking relationships in China, and to replace short-term bank lines with committed, longer term, competitively-priced funding arrangements. In securing this facility with CDB, Yantai Raffles has achieved an outcome that absolutely meets these two core objectives."
Yantai Raffles' two largest shareholders are Brian Chang and China International Marine Containers (Group) Co., Ltd ("CIMC").
The transaction reported today follows a cooperation agreement reached byCIMC and CDB in March 2009, in which CDB has provided CIMC with credit facilities of up to RMB 6.5 billion ($1 billion). This arrangement supports CIMC's future expansion plans in both domestic and international markets.