18 March 2014, Beijing. The Export-Import Bank of China (China Exim Bank) and Zhejiang Geely Holding Group (Geely Group) announced Tuesday that they have signed a strategic agreement under which Geely Group will have access to a 20 billion yuan credit facility from China Exim Bank. Geely Group intends to use the net proceeds from the credit facility to support development of overseas manufacturing facilities, export financing, the import and export of key equipment, and overseas logistics bases, etc.
The agreement was signed by China Exim Bank Vice President Sun Ping and Geely Group Vice President and Chief Financial Officer Daniel Donghui Li. China Exim Bank Chairman & President Li Ruogu and Geely Group Chairman Eric Li were also in attendance.
The agreement is the latest in a long-running partnership between China Exim Bank and Geely Group, during which China Exim Bank has lent Geely Group a combined 2.22 billion yuan since 2007, providing vital support to the company’s corporate and export growth. Following Geely Group’s acquisition of Volvo Cars in 2010, China Exim Bank actively assisted the company in opening up overseas markets, increasing its international competitiveness.
China Exim Bank official said, “Geely is a leader among indigenous China automotive brands that has enjoyed rapid and stable growth internationally. As a state financial institution, China Exim Bank sees it as our responsibility to help Chinese companies expand overseas market. This agreement is an important example of backing from financial institutions helping a Chinese company innovate and further internationalise its brand.
Geely Group Vice President and Chief Financial Officer Daniel Donghui Li added, “We’re delighted to have signed this agreement with China Exim Bank, which is real example of the Bank’s commitment to supporting private manufacturers like us to expand overseas. This agreement not only answers the Chinese government’s call to support Chinese enterprises as they ‘go out’, but also suit the needs of our company’s development footprint. We will use the funds from this agreement strategically to maximise their output and advance our international expansion.”