China Wind Power International Corporation has announced that it had received an RMB 300 million loan from the China Development Bank for the construction of one of the four 49.5 MW wind farms included in the Company’s 198 MW Phase 3 development. The Company also announced that 111 of the 132 sets of wind turbines planned for Phase 3 have been delivered to the site, with 104 sets of wind turbines having been installed to date.
The new bank loan has a term of 15 years repayable in installments commencing September 27, 2013. Interest is payable quarterly at a variable rate, which is equal to 110% of the commercial loan rate published by the People’s Bank of China. The loan is secured by the capital assets and future revenue of the wind farm; by shares of Daqing Zhongdan Ruihao Wind Power Co., Ltd. (which holds one of the Phase 3 wind farms); and by a guarantee from the Phase 3 turbine supplier. To date, the world-class turbine manufacturer supplying turbines for Phase 3 (please refer to news release dated August 17, 2011 for more information) has also provided the Company financing of RMB 263 million for Phase 3 construction.
When completed, the 198 MW Phase 3 project is expected to generate approximately 400 million KWh per year.