Singapore: Yantai Raffles Shipyard has signed a committed three year term loan facility with China Development Bank Corporation aimed primarily to retire more costly, existing bank debt and to establish working capital. Mai Bo Liang, Chairman of Yantai Raffles' Board said "Two of the priority objectives of the Company's current Finance strategy are to establish and build upon key banking relationships in China, and to replace short-term bank lines with committed, longer term, competitively-priced funding arrangements. In securing this facility with CDB, Yantai Raffles has achieved an outcome that absolutely meets these two core objectives."
"Yantai Raffles is delighted to establish this business relationship with CDB and, with the ongoing commitment of Yantai Raffles' two largest shareholders, Brian Chang and China International Marine Containers, and is confident that there will be opportunities to develop further areas of mutual cooperation with CDB," he added.
This transaction follows closely behind a Co-operation Agreement signed between CIMC and CDB in March 2009, in which CDB has provided CIMC with credit facilities of up to RMB 6.5bn ($1bn).
Yantai Raffles is one of China's leading offshore shipyards. Yantai Raffles' principal business is the construction of vessels and equipment for the offshore marine oil and gas markets at its shipyard in Yantai, Shandong Province, PRC. The shipyard has some of the largest manufacturing facilities in the world, and is able to undertake projects ranging from semi-submersible drilling rigs, jack-up drilling rigs, FPSO's, and other offshore and commercial vessels. [25/06/09]
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