August 19, 2013

Chongqing Grain Group signs syndicated loan facility

Chongqing Grain Group (CGG) announced on August 15 that the group signed a US$187.50 million syndicated loan arranged by DBS China division.

This is the largest syndicated loan arranged by a foreign bank in Chongqing, and the first time in the group's history to raise funds through syndicated loan.

The group's two subsidiaries - Chongqing Red Dragonfly Oil and Everwin Cereals & Oil arranged the deal, and will use the three-year facility to support the group's overseas expansion plans.

Hu Jun Lie, president of CGG, commented, "CGG is the largest grain company in southwest China and a major cooking oil supplier to Chongqing and its neighbouring cities, producing 10 million tonnes of oil annually. With imports valued at over US$100 billion, CGG is also the largest importer in Chongqing. CGG has expanded its financing channels and reduced our financing cost through this syndication loan. The facility has also better positioned CGG to attain its strategic goal of developing into a modern, world-class grain conglomerate."

Tan Teck Long, managing director and head of institutional banking group at DBS China, added: "DBS is very honoured to partner and support state-owned companies like CGG, which is an industry stalwart. We remain committed to support the development and prosperity of western China by helping our customers capture opportunities and grow with our strong pan-Asian network and deep Asian insights."