HONG KONG, July 24, 2015 /PRNewswire/ -- China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 01333), the world's second largest industrial aluminium extrusion product developer and manufacturer and the biggest one in Asia, today announced a 10-year syndicated term loan facility agreement (the "Facility") in the principal amount of up to RMB20 billion or its equivalent. The Facility was entered into by the Company's wholly owned subsidiary, Tianjin Zhongwang Aluminium Company Limited, with a consortium of six major state-owned banks in mainland China. The Facility is largely RMB-denominated and carries the same base rate as The People's Bank of China of the same duration. The proceeds will be used to support the development of the Company's high value-added aluminium flat rolled product project (the "FRP Project") in Tianjin which is expected to commence production soon.
Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, "We are pleased to have received extensive support from six major Chinese state-owned banks. It attests to the financial community's confidence in China Zhongwang's business outlook and their full support to the Chinese government's directive in promoting growth of high-end manufacturing segments. The 10-year Facility offers the Group high flexibility in making capital deployment plans and optimizing its debt structure, thereby bringing long-term benefits to its development."
Phase I of the soon-to-operate FRP Project consists of two production lines with a designed annual production capacity of 1.8 million tonnes. The first production line has completed plant and infrastructure construction and is in the final stage of equipment testing. The successful implementation of the FRP Project will complete the Company's industry layout, create synergy with its existing industrial aluminium extrusion and deep processing businesses, and further enhance the Company's long-term comprehensive competitiveness.
The Facility is participated by a consortium of six banks, with Industrial and Commercial Bank of China Limited ("ICBC"), Liaoning branch acting as the lead bank, Bank of China Limited ("BOC"), Liaoning branch as the joint-lead bank, Agricultural Bank of China Limited ("ABC"), Tianjin branch, and Export-Import Bank of China ("EIBC") as the co-lead banks. ICBC Tianjin Wuqing sub-branch serves as the agent bank. ICBC Liaoning branch and Tianjin Wuqing sub-branch, BOC Liaoning branch, ABC Tianjin branch, EIBC, China Construction Bank Limited, Tianjin branch and Bank of Communications Limited, Liaoning branch are the lenders.
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. 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 over 90 internationally advanced aluminium extrusion production lines including 21 production lines of large-scale aluminium extrusion presses of 75MN or above.
In addition, to further leverage its existing strengths in the industry, the Group is developing the high value-added aluminium flat rolled product project. With a total designed annual production capacity of 3 million tonnes, the project is scheduled for development in two phases. Phase I of the project with a planned annual production capacity of 1.8 million tonnes consists of two production lines. Plant construction and equipment installation have been completed for the first production line, which is now in the final stage of equipment testing and is expected to be commissioned by the end of the year. 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 industrial aluminium extrusion and deep processing businesses by taking full advantage of their customer and market resources in related downstream application sectors.
For further information on the Group, please visit www.zhongwang.com
