CF Energy signs working capital loan agreements with banks
TORONTO, June 30, 2021 (GLOBE NEWSWIRE) – CF Energy Corp. (TSX-V: CFY) (âCF Energyâ or the âCompanyâ, together with its subsidiaries, the âGroupâ), a leading new energy service provider in the People’s Republic of China (the âPRCâ or âChinaâ ) is pleased to announce the acquisition of RMB 40 million of new banking facilities by the Group.
RMB 30 million revolving working capital loan
One of the Company’s wholly owned subsidiaries has signed a three (3) year revolving working capital loan agreement (the âICBC Loanâ) for a total facility of RMB 30 million (RMB 5.7 million). Canadian dollars) with Industrial and Commercial Bank of China (ICBC), Sanya branch, Hainan province, PRC. The ICBC Loan is intended to finance the purchase of natural gas from the Group and bears an initial interest rate of 3.95% per annum. The interest rate on the ICBC loan will be adjusted every six months based on changes in the Reference Interest Rate (LPR) in RPC, if any. The ICBC loan is guaranteed by another wholly-owned subsidiary of the Group and is to be repaid in equal installments of RMB 5 million with an initial repayment in November 2021 and every six months thereafter until the end of the term of the loan. ready.
RMB 10 million working capital loan
Another wholly owned subsidiary of the Company has signed a one (1) year working capital loan agreement (the âCEB Loanâ) for a total facility of 10 million RMB (1.9 million CAD). with China Everbright Bank (CEB), Sanya Branche, Hainan Province, PRC. The CEB loan, which bears interest at a fixed rate of 4.5% per year, is guaranteed by another wholly-owned subsidiary of the Group and personal guarantee of Ann Lin (Chairman and CEO of the Company) and repayable at the end of loan mandate.
About CF Energy Corp. (formerly known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently listed on the Toronto Venture Stock Exchange (“TSX-V”) under the ticker symbol “CFY”. It is an integrated energy supplier and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine cutting edge clean energy technology with the use of natural gas to provide sustainable energy to its customers in the PRC. In 2009, CF Energy was recognized as one of China’s ten most influential brands in the natural gas industry, and in 2019 it was ranked among the top 50 TSX Venture 2019 performances on the TSXV for the year 2018.
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