CARLSTADT, N.J., June 13, 2012 /PRNewswire/ -- Jinpan
International Ltd. (Nasdaq: JST) (the "Company"), a leading
designer, manufacturer, and distributor of cast resin transformers,
today announced that it has entered into agreement with the Bank of
Communications for two credit lines – a long term credit line for
fixed asset investment and a short term credit line for working
capital – totaling RMB 350 million (approximately
US$ 55 million). The fixed
asset credit line is in the amount of RMB
210 million (approximately US$ 33
million) and carries an interest rate of People's Bank of
China Bench Mark Rate x 1.05 per
annum. Loans made under this credit line must be
applied to fixed asset investment at the Company's Guilin
facility. The credit line has a term of seven years.
Repayment of loan principal is scheduled over a seven year period,
from 2013 to 2019.
The working capital credit line is in the amount of RMB 140 million (approximately US$ 22 million) and carries an interest rate of
People's Bank of China Bench Mark
Rate x 1.05 per annum. Loans made under this credit
line must be applied to the working capital of the Company's Guilin
facility. The credit line has a term of two years. The
loan principal must be repaid in full annually.
Mr. Zhiyuan Li, Chief Executive
Officer of Jinpan, commented, "We are pleased to secure these two
lines of credit. Obtaining funding from an established lender
like Bank of Communications further validates Jinpan's attractive
long term growth outlook and strong operating model. These
two credit lines will be used to develop our new manufacturing
facility in Guilin. They will provide significant support to
our business expansion in a non-dilutive manner to our
shareholders. With the financial flexibility of our credit
lines and a healthy backlog, we remain comfortable with our
long-term growth strategies."
Safe Harbor Provision
This press release contains forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations and observations and
involve known and unknown risks, and uncertainties or other factors
not under the Company's control, which may cause actual results,
performance or achievements of the company to be materially
different from the results, performance or other expectations
implied by these forward-looking statements. These factors are
listed from time-to-time in our filings with the Securities and
Exchange Commission, including, without limitation, our Annual
Report on Form 20-F for the period ended December 31, 2011 and our subsequent reports on
Form 6-K.
Except as required by law, we are not under any obligation, and
expressly disclaim any obligation, to update or alter any
forward-looking statements, whether as a result of new information,
future events or otherwise.
SOURCE Jinpan International Ltd