RSHI Enters Strategic Agreement Obtaining USD 1.7 Billion Credit Line from China CITIC Bank

RSHI enters into a strategic cooperative agreement obtaining a RMB11 billion (approx USD 1.7 billion) credit line from China CITIC Bank. This comprehensive and in-depth strategic cooperation with China CITIC Bank benefits the Group’s four business segments. In view of the macroeconomic austerity measures such as tightening monetary policy and standardisation of financing implemented by the Chinese government, such a sizeable credit line demonstrates the strong industry position of China Rongsheng Heavy Industries, the confidence of the banking community in its prospects, as well as Government support for the industry.

China CITIC Bank and China Rongsheng Heavy Industries had been closely and strategically collaborated with each other for a long time. This time, China Rongsheng Heavy Industries will engage in comprehensive strategic cooperation with the Nanjing Branch of China CITIC Bank, highlighted by a credit line of RMB9 billion to be awarded to Jiangsu Rongsheng Heavy Industries Co., Ltd. for constructing a world-class shipbuilding and offshore engineering base. The Hefei Branch will grant a credit line of RMB2 billion to China Rongsheng Heavy Industries for use in its engineering machinery and marine engine building segments to support its rapid development. RMB900 million of the facility from the Hefei Branch is a mid- to long-term loan for the engineering machinery segment. A signing ceremony marking the loan grant was officiated by Mr. Jiao Shijing, Member of China CITIC Bank’s CPC Committee and President of the Nanjing Branch of China CITIC Bank, Mr. He Xiaolong, President of the Hefei Branch of China CITIC Bank and Mr. Chen Qiang, Chief Executive Officer of China Rongsheng Heavy Industries.

Founded in 1987, China CITIC Bank is the first national commercial bank established after China’s reform and opening. China CITIC Bank co-listed in Shanghai and Hong Kong on 27 April 2007. After more than two decades growth, China CITIC Bank has become one of commercial banks with strong capital, enjoying rapid growth as it has become an integrated competitive power in China. It is also one of the banks with the longest duration of cooperation with China Rongsheng Heavy Industries.

Source: rshi, June 29, 2011;

Posted on June 29, 2011