Jiangman Yili Fisheries (JFD) (Tri-ways helägda dotterbolag, SIAF äger ca 36% av Tri-way) får $15 miljoner kreditlina (100 miljoner RMB) från Agricultural Bank of China (ABC), läs pressreleasen här. Dessutom ingår partnerskap och möjlighet att utöka kreditlinan senare om allt går bra.
En annan sak är att ACB får möjlighet att löpande granska JFDs finanser vilket ökar SIAFs och Tri-ways trovärdighet ytterligare. Dessutom kommer ACB att hjälpa JFD att kunna låna mer från andra banker i deras kontaktnät.
På det hela taget ett viktigt steg för JFD och SIAF mot att få bättre tillgång till kapital.
Agricultural Bank of China Co. Ltd. Signs Bank-Enterprise Comprehensive Agreement with Jiangman Yili Fisheries
Revolving Credit Facility and Premier Banking Privileges Highlight Strategic Partnership
OTCQX: SIAF | OSE: SIAF-ME
Jul 17, 2017
GUANGZHOU, China– Sino Agro Food, Inc., a specialized investment company focused on protein food including seafood and cattle, wishes to announce a key agreement toward the financing and spinoff of its former subsidiary, Tri-way Industries, in which Sino Agro Food, Inc. holds a 36.6% ownership interest.
Agricultural Bank of China (“ABC”) and Jiangman Yili Fisheries Co. Ltd. China (“JFD”), a fully owned subsidiary of Tri-way Industries Ltd. (“TW”) have signed a Bank-Enterprise Comprehensive Strategic Cooperation Agreement (“BECSCA”) this past week in Guangzhou. JFD is one of the select companies afforded this level of partnership with ABC in the Guangdong region.
ABC is providing a revolving credit facility to TW/JFD, which is eligible to be drawn incrementally up to its maximum line of RMB 100 million, with the maximum line intermittently increased as experience and corollaries between ABC and TW/JFD materialize. The monetary amount designated for each draw and its use will be determined in consultation between both parties. A rolling audit of TW/JFD by ABC is one of the conditions that must be met satisfactorily to permit continued use and increase of the revolving credit facility.
In addition to the revolving credit facility, the other major provisions of the agreement include:
Personal banking VIP channel, which provides one-on-one consultation and expedited services to its clients;
Bond and debt advisory, including bond underwriting, debt financing, and/or direct (equity) investment in the Company;
Foreign lending and/or foreign investment facilitation, utilizing ABC’s international network of investors and lenders to obtain outside funding sources in addition to those provided by ABC.
According to the BECSCA, these and other provisions afforded TW/JFD culminate in what best can be described as a “win-win” joint venture.
Agricultural Bank of China Co., Ltd., the world’s third largest bank based on reported assets, is oriented to create partnerships with well-vetted corporations with an international focus.
TW plans to develop an aggressive export sales side to complement its already strong domestic sales operations. This is one of the primary reasons ABC has requested the Company to become an Enterprise Partner during the build-out phase of its development.
CEO and CFO Commentary
Mr. Solomon Lee, interim Chairman of TW as well as Chairman and CEO of Sino Agro Food, Inc., extended his sincere appreciation to the collective management of ABC for their high level of trust and confidence expressed in TW/JFD’s current operations, and its future impact, both locally and internationally.
Mr. Lee stated, “the ‘win-win’ partnership signed today with ABC, increases TW/JFD’s capacity to meet its development goals while enhancing its status as an economic driver throughout the region. Along with its recent 5A-1 rating by Dun and Bradstreet, the BECSCA arrangement provides further testament to JFD’s parent, TW, providing additional merit to the Company’s overall standing and expanded opportunities within the banking and business communities.”
SIAF CFO Dan Ritchey elaborated, “ABC is perhaps uniquely well-suited to help Tri-Way meet its aims, through not only financial commitment, but also direct strategic communication, and what it says to partners, customers, and other constituents about Tri-Way. As communicated previously, Tri-way is in discussions with financial institutions in other Asian countries.”