Jiangsu Rongsheng Secures Credit

29 September 2010 (Last Updated September 29th, 2010 18:30)

Jiangsu Rongsheng Heavy Industries has secured CNY50bn ($7.4bn) from the Bank of China. The bank will lend CNY30bn ($4.47bn) under a bank-enterprise strategic cooperation agreement while the remaining CNY20bn ($3bn) will be provided under a supply chain finance strategic cooperation ag

Jiangsu Rongsheng Heavy Industries has secured CNY50bn ($7.4bn) from the Bank of China.

The bank will lend CNY30bn ($4.47bn) under a bank-enterprise strategic cooperation agreement while the remaining CNY20bn ($3bn) will be provided under a supply chain finance strategic cooperation agreement.

The credit line includes cooperation in a letter of guarantee for ship export, seller’s credit in a shipbuilding contract, a letter of credit, and sale and purchase of forward foreign currencies against Chinese currency.

The Chinese shipbuilder had earlier signed a credit agreement with the Export-Import Bank of China, according to tradingmarkets.com.

The credit from the Chinese banks is expected to help the shipbuilder reduce difficulties in winning overseas orders and to deliver finished ships.