Hanwei Secures Debt Facility With China Construction Bank
RMB560million facility to fund growth of wind power and FRP pipe
Vancouver, BC, May 14, 2009. Hanwei Energy Services Corp. ("Hanwei" or the "Company") is pleased to announce that it has arranged a RMB560 million ($95.1 million) credit facility (the "Facility") with the China Construction Bank with a term of two years. The Facility will be secured with sales orders, accounts receivables, or guarantees from three of the Company's operating subsidiaries and be used to fund working capital, international trade and investment in fixed assets to support the Company's FRP pipe and wind power equipment business lines.
Hanwei's subsidiaries will draw down the credit lines as needed, subject to meeting credit requirements at the time of the draw down as assessed by the local branch, with interest rates to be set on each draw down based on prevailing market rates.
"This debt facility is expected to provide the funding that Hanwei needs to achieve its target of 40 percent to 60 percent revenue growth in 2009, without the need for equity," said Fulai Lang, President and CEO of Hanwei. "The Facility is a testament to Hanwei's track record of profitable growth and strong banking relationships in China."
