Bank of China has approved China Hydroelectric Corporation's subsidiary, Fujian Huabang Hydroelectricity Investment Co., as a borrower of up to an aggregate of $440million.
Under a Loan Framework Agreement, the bank has authorised loans to Fujian Huabang Hydroelectricity Investment Co. of up to $440million in the aggregate for the acquisition of hydroelectric projects. Each acquisition loan will be subject to individual approval by the bank, and the Framework Agreement represents Bank of China's form of internal commitment for the loan facility.
John D. Kuhns, Chairman & CEO of China Hydroelectric Corporation, said, "Together with our cash on hand and the assumption of debt in acquired projects, we expect the financing covered by the Framework Agreement to enable us to expand our portfolio of operating and development projects on a reasonable pace during 2010."
The company is pleased to enter into the agreement amidst reports that China will be limiting access to debt financing.
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