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CEFC International Advances in Establishing New Financing Channel

- Receives US$120 million uncommitted trade facilities that will be used beyond traditional back-to-back trades
- Laid foundation for broader scope of cooperation with the issuing bank and other credible banks
- Continues to develop other financing options, including long-term debt financing
CEFC International Limited
2016-02-11 11:59 3337

SINGAPORE, Feb. 11, 2016 /PRNewswire/ -- Mainboard-listed CEFC International Limited ("CEFC International" or the "Company" and together with its subsidiaries, the "Group"), today announced that a leading bank with top-notch rating globally ("Issuing Bank") has agreed to provide uncommitted trade facilities of US$120 million to the Company's wholly owned subsidiaries, Singapore CEFC Petrochemical & Energy Pte. Ltd., and Hong Kong China Energy Finance Service Co., Limited, according to an offer letter issued by the issuing bank on 26 January 2016 and approved by the Company's Board today.

As part of the Group's development strategies, one of the key growth drivers is to explore diverse sources of funding and financing channels so as to support the short-term and long-term growth of the Company, lower overall cost of capital and provide flexibility to meet growth needs. In furtherance of this, the Group and the issuing bank have been in talks to develop comprehensive financing solutions, with the uncommitted trade facilities of US$120 million as a start. The above-mentioned trade facilities will aid the Group in coping with its growing business volume as a result of its recent contract wins and expanding capacity.

Commenting on receiving the trade facilities, Mr. Zang Jianjun, Executive Chairman of CEFC International said,

"The initiation of obtaining financing from a credible bank with top-notch rating globally is an encouraging development of the company. We have been committed to broadening financing channels to support our sustainable growth. As the trade facilities will be used beyond traditional back-to-back trades, it offers more flexibility to meet our trading requirements at lower cost.

"In the midst of a volatile energy market, receiving a new credit line is a testament to our company's business prospects and our proper risk management. We are keen to broaden our scope of cooperation with the issuing bank and other credible banks to develop other financing options, such as long-term debt financing."

About CEFC International Limited

CEFC International Limited engages in the trading of petrochemical, fuel oil, and petroleum products, while actively exploring other opportunities along the value chain to vertically integrate with its trading business and diversify its revenue stream. Aiming to evolve into an integrated mid- and downstream oil and gas company with a focus on trading, CEFC International leverages on its superior trading expertise, well established customer and supplier base, and well-defined investment strategy to accomplish its objective. It has operations in Singapore, Hong Kong, Japan, Malaysia, mainland China, Europe, while continuing to develop other international markets.

For more information, please contact:
Romil SINGH / Reyna MEI
romil@financialpr.com.sg / reyna@financialpr.com.sg
Tel: (65) 6438 2990, Fax: (65) 6438 0064

Source: CEFC International Limited
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