December 6, 2016
Sino Agro Food Inc. receives loan commitment to develop aquaculture business
Sino Agro Food, Inc. confirmed that its operating company, Jiangmen City A Power Fishery Development Co. Ltd. (JFD), has received an official letter of commitment from one of Southeast Asia's top international banking firms regarding its loan approval.
The loan facility, which is subject to customary closing conditions, is an unsecured revolving two-year term loan of CNY250 million (US$36.3 million) for purposes of financing JFD's aquaculture business unit's working capital. The interest rate will be in line with conventional rates currently afforded revolving loans in China, which are currently hovering around 4.5% to 6.5%.
Solomon Lee, the chairman and CEO of Sino Agro Food, stated: "We would like to extend our appreciation to the lending institution for its commitment to us and our aquaculture business portfolio. Their sector expertise, business foresight and strong understanding of the significant opportunities within the China market were invaluable to us when securing this loan. The loan will enable us to develop the farm projects in the Guangdong region within an accelerated time frame."
"In addition to providing capital to build out the aquaculture segment of our business, we are confident this facility will enhance the company's credit worthiness in its ability to secure additional funds from the market," Lee added. "We remain committed to executing on our strategic plan to develop the aquaculture business into a world-leading provider of seafood prior to spinning out the business and listing it on a major stock exchange. This strategy is expected to unleash significant shareholder value and we are excited by the opportunities ahead of us as we move into this high growth phase of our development."