China Shipping Development Company (CSDC) has entered into a loan agreement with its controlling shareholder China Shipping and affiliate CS Finance Company, Seatrade Asia online reports. Hong Kong-listed CSDC will borrow RMB2bn ($317m) to mitigate the pressure on capital availability and allow the company to seize business opportunities.
“In view of recent changes in the PRC policies on bank liquidity and capital requirements, the banks will be more stringent in releasing loans, meaning that it will be more difficult for the company to apply for new loans from banks,” CSDC said.
The loan has a term of three years commencing from 26 March 2012 and ending on 26 March 2015 at 5.02% per annum.
“In view of recent changes in the PRC policies on bank liquidity and capital requirements, the banks will be more stringent in releasing loans, meaning that it will be more difficult for the company to apply for new loans from banks,” CSDC said.
The loan has a term of three years commencing from 26 March 2012 and ending on 26 March 2015 at 5.02% per annum.