- Financing will support completion of 49.5 MW wind farm project -
TORONTO, Dec. 13 /CNW/ - China Wind Power International Corp. (TSX-V: CNW) today announced that it has received the first tranche of a new 330,000,000 Yuan (approximately CDN$50 million) loan agreement signed with the Agricultural Development Bank of China, the Company's lender of record. The first tranche will consist of 140,000,000 Yuan (approximately CDN$21.2 million). The loan carries a basic commercial lending interest rate over the nine-year term, currently at 6.14%.
"We are very honoured that the Agricultural Development Bank of China has extended its relationship with us and is prepared to support our vision of becoming the leading wind farm operator in Heilongjiang province," said Mr. Jun Liu, China Wind's Chief Executive Officer. "In light of the recent tightening of monetary policies, our loan provides further evidence of the Chinese government's clear commitment to wind energy power."
China Wind will use the funds to complete construction of Phase 2 of its planned five phase wind farm development project.
"We are well on our way towards the completion of Phase 2 having installed 17 of our planned 35 turbines already. Given our recent progress, we anticipate completion of Phase 2 in the second quarter of calendar 2011," Mr. Liu also said.
When fully completed, Phase 2 will consist of 35 turbines and a combined capacity of 49.5 MW of renewable energy. China Wind is committed to completing a five phase wind farm in 2014 that will ultimately provide 546 MW of capacity.
About China Wind Power International Corp.
China Wind Power International Corp. is an Ontario company that is uniquely positioned to capitalize on the growing demand for wind power in China. The Company indirectly holds the exclusive rights for wind energy development in Du Mon County, Heilongjiang province, which has a demonstrated potential installed capacity of 1,150 MW of wind energy developable over an area of 612 square km. While 1,150 MW represents the Company's long-term potential for wind power in the area, its current plans are for building out 546 MW over five development phases. The Company's common shares are listed on the TSX Venture Exchange under the symbol CNW. The Company has approximately 63.9 million shares outstanding.
Certain statements that are not historical facts made in this press release may be forward looking statements subject to risks and uncertainties. Statements containing words such as "will", "could", "expect", "may", "anticipate", "believe", "intend", "estimate", "plan" and other similar expressions are forward-looking statements that represent management's beliefs at the time the statements are made and are based on certain factors and assumptions including wind farm construction and commercial production schedule, output and capacity, revenue and earnings expectations and market potential. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties involving the availability of financing; fluctuations in currency exchange rates; uncertainties relating to economic and market conditions; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to develop the projects and uncertainty as to the availability and terms of future financing; the possibility of delay in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the information circular dated May 29, 2009 relating to the Company's reverse take-over with Berkshire Griffin Inc., which is available at www.sedar.com under the Company's profile. Except as required by applicable securities laws, the Company undertakes no obligation to update any forward looking statement to reflect events or circumstances after the date on which such statement is made.
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