Agricultural Bank of China Co. Ltd. Signs Bank-Enterprise Comprehensive Agreement with Jiangman Yili Fisheries
Revolving Credit Facility and Premier Banking Privileges Highlight Strategic
GUANGZHOU, China-- Sino Agro Food, Inc. (OTCQX: SIAF | OSE: SIAF-ME), a
specialized investment company focused on protein food including seafood and
cattle, wishes to announce a key agreement toward the financing and spinoff of
its former subsidiary, Tri-way Industries, in which Sino Agro Food, Inc. holds a
36.6% ownership interest.
Agricultural Bank of China ("ABC") and Jiangman Yili Fisheries Co. Ltd. China
("JFD"), a fully owned subsidiary of Tri-way Industries Ltd. ("TW") have signed
a Bank-Enterprise Comprehensive Strategic Cooperation Agreement ("BECSCA") this
past week in Guangzhou. JFD is one of the select companies afforded this level
of partnership with ABC in the Guangdong region.
ABC is providing a revolving credit facility to TW/JFD, which is eligible to be
drawn incrementally up to its maximum line of RMB 100 million, with the maximum
line intermittently increased as experience and corollaries between ABC and
TW/JFD materialize. The monetary amount designated for each draw and its use
will be determined in consultation between both parties. A rolling audit of
TW/JFD by ABC is one of the conditions that must be met satisfactorily to permit
continued use and increase of the revolving credit facility.
In addition to the revolving credit facility, the other major provisions of the
· Personal banking VIP channel, which provides one-on-one consultation and
expedited services to its clients;
· Bond and debt advisory, including bond underwriting, debt financing, and/or
direct (equity) investment in the Company;
· Foreign lending and/or foreign investment facilitation, utilizing ABC's
international network of investors and lenders to obtain outside funding sources
in addition to those provided by ABC.
According to the BECSCA, these and other provisions afforded TW/JFD culminate in
what best can be described as a "win-win" joint venture.
Agricultural Bank of China Co., Ltd., the world's third largest bank based on
reported assets, is oriented to create partnerships with well-vetted
corporations with an international focus.
TW plans to develop an aggressive export sales side to complement its already
strong domestic sales operations. This is one of the primary reasons ABC has
requested the Company to become an Enterprise Partner during the build-out phase
of its development.
CEO and CFO Commentary
Mr. Solomon Lee, interim Chairman of TW as well as Chairman and CEO of Sino Agro
Food, Inc., extended his sincere appreciation to the collective management of
ABC for their high level of trust and confidence expressed in TW/JFD's current
operations, and its future impact, both locally and internationally.
Mr. Lee stated, "the 'win-win' partnership signed today with ABC, increases
TW/JFD's capacity to meet its development goals while enhancing its status as an
economic driver throughout the region. Along with its recent 5A-1 rating by Dun
and Bradstreet, the BECSCA arrangement provides further testament to JFD's
parent, TW, providing additional merit to the Company's overall standing and
expanded opportunities within the banking and business communities."
SIAF CFO Dan Ritchey elaborated, "ABC is perhaps uniquely well-suited to help
Tri-Way meet its aims, through not only financial commitment, but also direct
strategic communication, and what it says to partners, customers, and other
constituents about Tri-Way. As communicated previously, Tri-way is in
discussions with financial institutions in other Asian countries."
1 (775) 901-0344
Todd Fromer / Elizabeth Barker
1 (212) 896-1215 / 212-896-1203
+46 (0)8 120 558 30
About Sino Agro Food, Inc.
SIAF is a specialized investment company focused on protein food. The Company
produces, distributes, markets, and sells sustainable seafood and beef to the
rapidly growing middle class in China. Activities also include production of
organic fertilizer and produce. SIAF is a global leader in developing land based
recirculating aquaculture systems ("RAS"), and with its partners is the world's
largest producer of sustainable RAS prawns.
Founded in 2006 and headquartered in Guangzhou, the Company had over 550
employees and revenue of USD 343 million in 2016. Operations are located in
Guangdong, Qinghai, and Hunan provinces, and in Shanghai. Sino Agro Food is a
public company listed on OTCQX U.S. Premier in the United States and on the Oslo
Børs' Merkur Market in Norway.
News and updates about Sino Agro Food, Inc., including key information, are
published on the Company's website (http://www.sinoagrofood.com), the Company's
Facebook page (https://www.facebook.com/SinoAgroFoodInc), and on twitter