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Texhong Textile gets a loan facility of HK$280m
02 Aug '06
2 min read
China's leading upstream high value-added core-spun cotton textile manufacturer Texhong Textile Group Limited announced that it had successfully obtained a loan facility ('Facility') of up to a principal amount of US$35 million (equivalent to approx. HK$280 million) from a syndicate of six banks including ABN AMRO BANK, Overseas-Chinese banking Corporation Limited, CITIC Ka Wah Bank Limited, The Korea Development Bank, Korea Exchange Bank, and Asia Commercial Bank.
The Facility is for a term of three years and is guaranteed by the company and its two subsidiaries. The interest rate is set at LIBOR plus 0.8% per annum. The amount of the Facility represents approx. 33.7% of the total amount of banking/credit facilities (including the Facility) presently available to Group.
The Facility obtained will be applied for two main purposes. Approximately 50% of it will be applied to repay certain secured short-term bank loans with domestic banks. This will enable the Company to reduce its interest expenses. The remaining 50% of the loan will mainly be applied to fund business expansion and acquisition of assets.
Hong Tianzhu, Chairman of the Group said, "The Facility will enhance our financial position and enable us to seek rapid business expansion. The successful syndication reflects the strong confidence of the syndication banks in the Group. We will make effective use of the Facility to propel future expansion and business development."
Texhong Textile Group Limited is one of the largest high value-added core- spun cotton textile manufacturers in the PRC and is a leading textile enterprise focusing on manufacturing high value-added core-spun cotton textile products. It is principally engaged in the manufacture and distribution of quality yarn, grey fabrics and garment fabrics, especially high value-added spandex stretch yarn and fabrics.
The Facility is for a term of three years and is guaranteed by the company and its two subsidiaries. The interest rate is set at LIBOR plus 0.8% per annum. The amount of the Facility represents approx. 33.7% of the total amount of banking/credit facilities (including the Facility) presently available to Group.
The Facility obtained will be applied for two main purposes. Approximately 50% of it will be applied to repay certain secured short-term bank loans with domestic banks. This will enable the Company to reduce its interest expenses. The remaining 50% of the loan will mainly be applied to fund business expansion and acquisition of assets.
Hong Tianzhu, Chairman of the Group said, "The Facility will enhance our financial position and enable us to seek rapid business expansion. The successful syndication reflects the strong confidence of the syndication banks in the Group. We will make effective use of the Facility to propel future expansion and business development."
Texhong Textile Group Limited is one of the largest high value-added core- spun cotton textile manufacturers in the PRC and is a leading textile enterprise focusing on manufacturing high value-added core-spun cotton textile products. It is principally engaged in the manufacture and distribution of quality yarn, grey fabrics and garment fabrics, especially high value-added spandex stretch yarn and fabrics.
Texhong Textile Group Limited
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