CRTG’s subsidiary seals RMB 8.82bn long-term loan agreement with syndication led by China Development Bank
China Resources and Transportation Group Limited ("CRTG" or the “Company”, together with its subsidiaries known as the“Group”) (stock code: 00269) is pleased to announce that its subsidiary Inner Mongolia Zhunxing Heavy Haul Expressway Company Limited (“Zhunxing”) on December 27 entered into a RMB 8.82 billion syndicated loan agreement with banks. With the proceeds from this credit facility, Zhunxing will be in a stronger financial position to complete and operate the Zhunxing Expressway. Management is confident that the expressway will commence full operation in October 2013 as scheduled, the Group's press release said.
China Development Bank is the leading bank of the syndication, with Hua Xia Bank and China Merchants Bank being the participating banks. The loan consists of two parts: the first part is RMB 3.75 billion loan with a term of 21 years; another part is RMB 5.07 billion loan with a term of 20 years. The annual interest rate of the loan is 6.8775%. Proceeds of RMB 3.25 billion out of the RMB 8.82 billion long-term loan will be used to settle Zhunxing’s existing short-term loan (which has been invested in the construction of the expressway), while the balance will be used on its development.
Mr. Cao Zhong, the Chairman of CRTG, said, “The extension of a long-term loan facility of approximately RMB 8.8 billion to the Group by leading financial institutions like China Development Bank reflects that our expressway operation is warmly received by the market. Its development is progressing well and management is confident that it will be completed in October 2013 as planned. This project will deliver stable and reasonable cashflows and profits to the Group, driving our sustainable business growth.”