Desulphurization project for Chinese steel maker secures funding
DALIAN, China, April 21, 2010 -- RINO International has secured an $8.1 million project loan for "build" contract of its BOT (Build-Operate-Transfer) desulphurization project with Shougang Jingtang Iron & Steel Co., Ltd...
DALIAN, China, April 21, 2010 -- RINO International Corp., which through its subsidiaries and controlled affiliates (collectively, the "Company" or "RINO"), designs, manufactures, installs and services proprietary and patented wastewater treatment, desulphurization equipment, and high temperature anti-oxidation systems for iron and steel manufacturers in the People's Republic of China ("PRC"), today announced that the Company secured an $8.1 million project loan for "build" contract of its BOT (Build-Operate-Transfer) desulphurization project with Shougang Jingtang Iron & Steel Co., Ltd.
The project loan, provided by Pudong Development Bank of Shanghai, has a four-year term which commenced on March 1, 2010. Interest on the outstanding principal of the loan is payable quarterly. The interest rate, initially set at 6.9%, is based upon the Chinese Central Bank Rate plus a fixed margin, and can be adjusted only once annually to reflect changes in the underlying Central Bank Rate. Additionally, the loan carries no prepayment penalties. The loan is for the construction phase of the BOT contract, which covers the design, construction and installation of two Semi-Dry Flue Gas Desulphurization ("FGD") units. Upon construction completion and final customer approval, RINO will commence the 10-year operating contract. The commencement date is expected to be in the fourth quarter of 2010.
"We are very pleased to secure this loan from Pudong Development Bank of Shanghai for our Shougang Jingtang project," commented Mr. Zou Dejun, President and CEO of RINO International. "China's Shougang Group, the parent company of Shougang Jingtang, is China's fourth largest steel maker, which means it has excellent credit quality. To support accelerated adoption of FGD systems by steel producers, the government is encouraging the BOT model which benefits both small and larger players by enabling them to spread capital expenditures over a period of time and attain the best technology at the 'lowest cost of use'. This is similar to how many Fortune 500 companies like General Electric, Caterpillar and Hewlett Packard, facilitate customer equipment deployments and speed adoption. By leveraging bank financing to cover construction costs, RINO is able to increase its sales while not impacting our working capital position, thus increasing our return on invested capital. We plan to pursue additional BOT projects with the goal of incorporating operating agreements into as many as possible, where our team can effectively manage the equipment."
About RINO International Corporation
RINO International Corporation, through its direct and indirect subsidiaries, including Innomind Group Limited, Rino Investment (Dalian) Co., Ltd. ("Rino Investment") and Rino Investment's wholly owned subsidiary, Dalian Rino Heavy Industries Co., Ltd., together with Dalian Innomind Environment Engineering Co., Ltd., its contractually-controlled affiliate, Dalian RINO Environmental Engineering Science and Technology Co., Ltd. ("Dalian Rino") and Dalian Rino's wholly-owned subsidiaries, Dalian Rino Environmental Engineering Project Design Co., Ltd., Dalian Rino Environmental Construction & Installation Project Co., Ltd. and RINO Technology Corporation, is a leading provider of environmental protection equipment for the iron and steel industry in China. Specifically, RINO designs, manufactures, installs and services proprietary and patented wastewater treatment, flue gas desulphurization equipment, and high temperature anti-oxidation systems, which are all designed to reduce either industrial pollution and/or improve energy utilization. RINO's manufacturing facility maintains the ISO 9001 Quality Management System and ISO 14001 Environment Management System certifications, in addition to receiving numerous government and industry awards. Additional information about the Company is available at the Company's website: http://www.rinogroup.com/ .