Lizhong Wheel Group said it has entered into a loan agreement with Bangkok Bank Public Company for a facility of up to US$60 million ($75.3 million).
Lizhong Wheel said the loan will be used for providing a shareholder’s loan to its subsidiary Tianjin Lizhong Wheel Company.
This is for the purchase of new machinery and equipment for the aluminium alloy wheel production of Tianjin Lizhong in China.
It is also for the repayment of Tianjin Lizhong’s total existing debts of RMB 90 million ($17.7 million) to the Industrial and Commercial Bank of China, China Citic Bank and Huaxia Bank.
The rate of interest per annum to the facility for shall be the aggregate of 3.25% per and the rate determined by the lender to be the mean rate per annum at which US dollar deposits are offered for a period of six-month in the interbank market.
If burrower and lender wants get loan from bank then they commit for shareholder loan agreement.
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