China Rongsheng Heavy Industries has secured a $220m syndicated loan from the Export-Import Bank of China and Paris-based Credit Agricole Corporation and Investment Bank, Seatrade Asia online reports. The loan from an overseas bank marks the gradual tightening of credit against the backdrop of a series austerity measures recently taken by the Chinese government to rationalise credit activities.
“Facing tighter credit in China, the $220m loan changes the proportion of debts from foreign and local banks, and provides us with an opportunity to implement foreign exchange risk measures and lower our financing costs,” said Chen Qiang, ceo and executive director of China Rongsheng.
China Rongsheng said the loan will be used to complement its working capital.
“Facing tighter credit in China, the $220m loan changes the proportion of debts from foreign and local banks, and provides us with an opportunity to implement foreign exchange risk measures and lower our financing costs,” said Chen Qiang, ceo and executive director of China Rongsheng.
China Rongsheng said the loan will be used to complement its working capital.