China Zhongwang signs USD200 million syndicated loan facility

China Zhongwang Holdings Limited, the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China, announced today the signing of a USD200 million three-year syndicated term loan facility with a consortium of 15 mainland Chinese, Hong Kong and Taiwan financial institutions. A signing ceremony was held in Taiwan. The syndicated loan carries interest at 275 basis points over LIBOR.

The syndicated loan facility was jointly provided by banks across mainland China, Hong Kong and Taiwan, making China Zhongwang one of the largest non-state-owned mainland Chinese enterprises to benefit from "Taiwan government's" relaxed restrictions on loans provided by Taiwan banks to institutions and individuals from mainland China since September 2011.

The facility was well received by the market and substantially oversubscribed. Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said at the signing ceremony, "This is our first overseas fund raising exercise since the Company's listing in May 2009. We are thankful for the active participation of banks and financial institutions in the Greater China region, which provided low cost of capital to the Group. It will help enhance our capital structure and strengthen our overall competitiveness. The strong market response to the syndicated loan from banking institutions in the Greater China region is a testament to the Group's solid business fundamentals and positive outlook. The syndicated loan sets a good beginning to pave the way for all parties involved to explore further collaboration."

Bank of Taiwan, Taishin International Bank, Ping An Bank, Mega International Commercial Bank and Nomura International (Hong Kong) Limited, are the lead arrangers and bookrunners of the facility. It is the first time the mainland-based Ping An Bank collaborates with a group of Taiwan and Hong Kong banking institutions to arrange a syndicated loan, marking a stride for financial institutions in the Greater China region to jointly provide financing services to mainland Chinese enterprises. With ever-growing economic exchanges within the region, it is expected that banking institutions in mainland China, Hong Kong and Taiwan will foster closer ties to provide Chinese enterprises with a low cost and highly effective financing platform.