Under the terms of the framework agreement, the Bank of China has authorized loans to Fujian Huabang Hydroelectricity Investment for the acquisition of hydroelectric projects. Each acquisition loan will be subject to individual approval by the bank and to definitive documentation that will include the term and interest rate thereof.
John Kuhns, chairman and CEO of China Hydroelectric, said: “Given reports that certain sectors in China may lack for debt financing and coming so soon following China’s announcement that it will be limiting access to debt financing, we are especially pleased to enter into this Framework Agreement with the Bank of China.
“The framework agreement is an extremely positive development for our company and evidences the Bank of China’s ongoing and increased willingness to support China Hydroelectric’s plans to implement its strategy of acquiring small hydroelectric projects through a significant internal commitment of debt financing.”
