19 May IDC GETS USD 50M FACILITY FROM CHINA CONSTRUCTION BANK
Johannesburg- The Industrial Development Corporation of South Africa Limited (IDC) has received a USD 50m loan from China Construction Bank (CCB)-Johannesburg Branch Chinese state-owned bank with offices in Sandton, Johannesburg.
The commercial loan will assist the IDC to increase its lending capacity in general and also recapitalize its export finance loan book.
The agreement on the facility was signed in April 2009.
IDC Chief Executive Officer Geoffrey Qhena has revealed that due to the economic crisis the demand for lending has tremendously increased prompting the state-owned lender to source funding from the international market to meet the demand.
“Over the past year, our units have been receiving an unprecedented amount of applications so we have seen it fit to also go out and source funding so that we can increase our capacity to lend,” he explained.
“We also have an export loan book, which we believe this CCB loan will assist in recapitalizing it since the demand for export funding has also increased from our front.”
Whilst this is the first facility IDC has had with CCB, Qhena revealed that they take this as a step towards a long lasting relationship with the Chinese lender.
CCB-Johannesburg General Manager Mr Yimin He said; “In view of the negative impacts by the global economic downturn, we believe that it is important for CCB Johannesburg to play a supportive role for good business in South Africa. We see our facility with the IDC as a milestone for our mutually beneficial relationship and look forward to further enhancing our cooperation in the near future.”
About China Construction Bank-Johannesburg Branch
China Construction Bank Johannesburg Branch (CCB JHB) is a local branch of China Construction Bank Corporation.
CCB JHB was registered as a foreign branch with the South African Reserve Bank (SARB) on April 17th, 2000 and officially commenced operating in South Africa on October 2nd, 2000.
CCB JHB focuses on offering Merchant, Wholesale and Investment Banking products and services to Sub-Saharan Africa as well as the South African business community.
CCB JHB also takes an instrumental role in promoting trade and investment between the Southern African Development Community (SADC) Sub-Saharan Africa and China, as well as related Global business opportunities in the region.
CCB Media Contact:
Mr. Rong Gao
Deputy General Manager
Tel: +27 11 520 9402
The IDC (www.idc.co.za) is a self -financing, state-owned development finance institution. The vision of the IDC is to be the primary source of commercially sustainable industrial development and innovation to the benefit of South Africa and the rest of the African continent.
The IDC provides financing to entrepreneurs engaged in competitive industries and enterprises based on sound business principles.
IDC Media Contact:
Tel: +27112693293/ 3000
Head: Corporate Communications
Phone: +2711 269 3000