8 June 2009 - Chinese corn starch and corn gluten producer Asia Bio-Chem Group Corp. has announced that its wholly-owned subsidiary, Daqing Biochemical has secured a long-term loan from the China Construction Bank.
The amount, estimated at RMB 100 million RMB (USD 18.9 million) will be secured against the assets of the Company's Daqing Plant and will bear a floating rate of interest based on the People's Central Bank Rate. The term of the loan will be 6 years with annual repayment commencing from June 2010.
"We are pleased to announce this financing agreement," said Zhiping Wang, President and CEO of Asia Bio-Chem.
"This loan facility, coupled with the previously announced loan from the Zhaoyuan County Government, will be more than sufficient to finance the completion of our Daqing project," he added.
The construction of the Daqing plant is expected to be completed in Q3 2009 with significant revenues to be achieved in the Q4, said the company.