CF Energy Signs Working Capital Loan Agreements with Banks in China
TORONTO, June 30, 2021 (GLOBE NEWSWIRE) — CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a leading new energy service provider in the People’s Republic of China (the ”PRC” or “China”) is pleased to announce the procurement of RMB40 million new banking facilities by the Group.
The Revolving Working Capital Loan of RMB30 million
One of the wholly-owned subsidiaries of the Company has signed a three (3) -year revolving working capital loan (the “ICBC Loan”) agreement for a total facility of RMB30 million (CAD$5.7 million) with the Industrial and Commercial Bank of China (ICBC), Sanya Branch, Hainan province, the PRC. The ICBC Loan is for the purpose of financing the purchase of the Group’s natural gas and carries an initial interest rate of 3.95% per annum. The interest rate of the ICBC Loan will be adjusted at six-monthly intervals according to changes of the benchmark interest rate (LPR) in the PRC, as applicable. The ICBC Loan is guaranteed by another wholly-owned subsidiary of the Group and is to be repaid by equal instalments of RMB5 million with initial repayment in November 2021 and every six months thereafter until the end of the tenure of the loan.
The working capital loan of RMB10 million
Another wholly-owned subsidiary of the Company has signed a one (1) year working capital loan (the “CEB Loan”) agreement for a total facility of RMB10 million (CAD1.9 million) with the China Everbright Bank (CEB), Sanya Branch, Hainan province, the PRC. The CEB Loan, which carries interest at the fixed rate of 4.5% per annum, is guaranteed by another wholly-owned subsidiary of the Group and personal guarantee of Ann Lin (Chair and CEO of the Company) and repayable at the end of the tenure of the loan.
About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, CF Energy was recognized as being one of China’s the Top Ten Most Influential Brands in the Natural Gas Industry and in 2019, ranked amongst the 2019 TSX Venture 50 top performers on the TSXV for the 2018 year.
Director of the Board
VP Capital Market
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