The Lender agrees to loan RMB130m ($20.31m) to Xi’an TCH for a term of 48 months from the first take-down of the loan.
The first nine months of the loan will be a grace period where repayment is not requirement.
Xi’an TCH will start to make repayment on the 28th day of the last month of each quarter after the grace period and each payment will include principal in no less than RMB10m ($1.56m).
The loan agreement has a floating interest rate that resets each quarter at 115% of the national base interest rate for the same term and same level loan per annum.
The present national base interest rate, People’s Bank of China rate is 7.05% and 115% of that rate will be 8.1075% per annum.
These funds will be deployed by CREG to further the construction of a 23MW waste-to-energy system for its customer Shanxi Datong Coal Group.
With the new special energy saving and emission reduction loan to fund the development of its energy saving projects at a much lower interest rate, the company will then initiate the repayment of RMB75m in convertible notes and trust loans held by China Cinda Asset Management and its affiliates.
CREG chairman and CEO Guohua Ku said over the past several quarters, we have been ardently focused on securing lower borrowing rates from both domestic and international financiers.
"Cinda still remains a strategic partner to our company and will continue to work with us on furthering our project development and operations moving forward," Ku said.
