Yongan Forestry secures RMB 23m entrusted loan from controlling shareholder

Fujian Yongan Forestry Group Joint-Stock (Yongan Forestry) has approved an RMB 23 million entrusted loan from its controlling shareholder, China Forestry Group. This financing, sourced from state-owned capital operating budget funds, will be channeled through Xiamen Bank's Sanming Branch. The loan carries an annual interest rate of 2.8% and a term of three years, with funds earmarked for national reserve forest construction projects.

The transaction, classified as a related party transaction, received unanimous approval from Yongan Forestry's independent directors and the board of directors, with related parties abstaining from the vote. This aligns with regulations allowing central enterprises to directly inject capital or provide entrusted loans to subsidiaries for such projects. The funds will be further allocated to Yongan Forestry's wholly-owned subsidiaries, China Forestry (Putian) Forestry Development Co., Ltd. and China Forestry (Zhangzhou) Forestry Development Co., Ltd.

This entrusted loan aims to bolster Yongan Forestry's operational capabilities and competitiveness, contributing to its long-term development without compromising the company's independence or the interests of its shareholders. The pricing of the loan is considered fair and market-based, not exceeding the external financial market's prevailing loan interest rates.