CDB provides RMB 66 million loan to Canadia Bank for agriculture (linked to #62347)

On December 13, 2010, CDB and Canadia Bank signed two loan facility agreements. The first one amounted to US$20 million (see #62347) and the second facility agreement amounted to 66 million RMB (approximately US$10 million). Dieter Billmeier, Canadia Bank’s vice president said they will use the loans to more funds into agriculture and related areas. The RMB 66 million CDB loan facility agreement with Canadia Bank has an 8-year maturity and bears an annual interest rate of six-month LIBOR plus a credit spread of 4.0%. The LIBOR rate is not identified in reports, so the average 6 Month LIBOR rate from December 2010 (when the financing agreement was signed) is used in the interest rate calculation. The total interest rate is 0.458% + 4.00% = 4.458%. There's no grace period ("CanadiaBank_AnnualReport_2010_ENG.pdf" pdf p.63). As of December 31, 2010, Canadia Bank had drawn down $10 million USD from the $20 million USD facility. As of December 31, 2010, Canadia Bank had drawn down $17 million USD total from the $20 million USD facility and $470,000 from the RMB 66 million facility.

Number of official sources

5

Number of total sources

6