Financial institutions across Greater China region join handsto provide funding platform for Chinese enterprises
HONG KONG, Jan. 16, 2013 /PRNewswire/ -- China Zhongwang Holdings Limited ("China Zhongwang" or "the Company", together with its subsidiaries "the Group", stock code: 01333), the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China, announced today the signing of a USD200 million three-year syndicated term loan facility with a consortium of 15 mainland Chinese, Hong Kong and Taiwan financial institutions. A signing ceremony was held in Taiwan. The syndicated loan carries interest at 275 basis points over LIBOR.
The syndicated loan facility was jointly provided by banks across mainland China, Hong Kong and Taiwan, making China Zhongwang one of the largest non-state-owned mainland Chinese enterprises to benefit from "Taiwan government's" relaxed restrictions on loans provided by Taiwan banks to institutions and individuals from mainland China since September 2011.
The facility was well received by the market and substantially oversubscribed. Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said at the signing ceremony, "This is our first overseas fund raising exercise since the Company's listing in May 2009. We are thankful for the active participation of banks and financial institutions in the Greater China region, which provided low cost of capital to the Group. It will help enhance our capital structure and strengthen our overall competitiveness. The strong market response to the syndicated loan from banking institutions in the Greater China region is a testament to the Group's solid business fundamentals and positive outlook. The syndicated loan sets a good beginning to pave the way for all parties involved to explore further collaboration."
Bank of Taiwan, Taishin International Bank, Ping An Bank, Mega International Commercial Bank and Nomura International (Hong Kong) Limited, are the lead arrangers and bookrunners of the facility. It is the first time the mainland-based Ping An Bank collaborates with a group of Taiwan and Hong Kong banking institutions to arrange a syndicated loan, marking a stride for financial institutions in the Greater China region to jointly provide financing services to mainland Chinese enterprises. With ever-growing economic exchanges within the region, it is expected that banking institutions in mainland China, Hong Kong and Taiwan will foster closer ties to provide Chinese enterprises with a low cost and highly effective financing platform.
Mr. David Ng, Managing Director of Nomura Investment Banking Division, said, "China Zhongwang's debut international debt fundraising is an important milestone for the Company and Greater China's syndicated loan market. The success of this deal will give China Zhongwang strong access to the international bank market and help the company meet its future financing objectives."
About China Zhongwang Holdings Limited
China Zhongwang is the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China. It has, over the years, been focusing on the light-weight development of transportation, machinery and equipment and electric power engineering sectors through the provision of quality industrial aluminium extrusion products. It now has 93 globally advanced extrusion production lines (including eight aluminium extrusion production lines of 75MN or above under installation), among which the 125MN oil-driven dual action extrusion press is currently one of the largest and most advanced of its kind in the world. These enable the Company to produce large-section and high precision industrial aluminium extrusion products tailored to its customers' needs. These products are widely used in the transportation sector such as railway passenger compartments and cargo carriages, metropolitan subway and light rail, automobiles, heavy trucks, vessels, aviation, aerospace, etc., and equipment and machinery and electric power engineering sectors. In addition, to further leverage its existing strengths in the industry, the Group is developing the high value-added aluminium flat rolled product business. The first phase of the project with an annual capacity of 1.8 million tonnes of high-end aluminum flat rolled products is expected to gradually commence production by the end of 2014 and the overall designed production capacity of 3 million tonnes will be realized in 2018. This new business venture will not only enable the Group to further capitalize on its leading edge in aluminium alloy smelting and casting and product research and development, but also achieve synergies with its existing business by taking full advantage of its customer and market resources in related downstream application sectors.
For further information on the Group, please visit www.zhongwang.com.
