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JES secures up to $40m financing

China-based shipbuilder JES International has secured a loan facility of up to $40m from a US-based private investment fund.

The loan facility will be available for a maximum of $20 for three years with an option for an additional $20m.

JES is expecting to utilise the funds available for working capital purposes and any potential merger and acquisition opportunities that may come along.

“This credit line is timely for JES as we require a good level of working capital for our core business and there are some good investment opportunities for diversification like the potential investment in Mineriver Pte Ltd, which is in the process of acquiring mining assets in China,” said Patrick Kan, executive director and chief financial officer of JES.

“In addition to a different source of future cash flow, the diversified investment in mining assets also serves to mitigate the cyclical effect of our core shipbuilding operations,” he added.

JES has been constantly seeking new order opportunities in various types of offshore vessels and jack-up rigs.

It added that it has been very careful in the process of securing any possible order by choosing to collaborate with reputable customers only, due to the current challenging environment in the shipbuilding industry.

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