China Rongsheng Heavy Industries secured a loan of RMB35bn ($5.5bn) from China Development Bank (CDB) on Wednesday. In August the Chinese shipyard inked a RMB30bn credit from the bank, Seatrade Asia online reports. The credit agreement includes a basket of financing services including syndicated loan, liquidity loan, trade finance and financial lease.
Hong Kong-listed China Rongsheng said the credit facility will replenish the group's working capital under the current economic conditions and fortify its operations.
“With the banking sector continuously tightening monetary policy and strictly assessing daily average loan-to-deposit ratio, the tight liquidity condition of the banks in mainland China has worsened and credit has been restricted. Mainland banks tend to shift their support to renowned enterprises,” said Chen Qiang, ceo and executive director at China Rongsheng.
Hong Kong-listed China Rongsheng said the credit facility will replenish the group's working capital under the current economic conditions and fortify its operations.
“With the banking sector continuously tightening monetary policy and strictly assessing daily average loan-to-deposit ratio, the tight liquidity condition of the banks in mainland China has worsened and credit has been restricted. Mainland banks tend to shift their support to renowned enterprises,” said Chen Qiang, ceo and executive director at China Rongsheng.