China Wind Power International Corp., today 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.
About China Wind Power International Corp.
China Wind Power International Corp. is an Ontario company that is uniquely positioned to capitalize on the growing demand for wind power in China. The Company indirectly holds the exclusive rights for wind energy development in Du Mon County, Heilongjiang Province, which has a demonstrated potential installed capacity of 1,150 MW of wind energy developable over an area of 612 square km. While 1,150 MW represents the Company's long-term potential for wind power in the area, its current plans are for building out approximately 800 MW over five development phases. The Company's common shares are listed on the TSX Venture Exchange under the symbol "CNW". The Company has approximately 63.9 million shares outstanding.
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Caution Regarding Forward-Looking Statements
Certain statements that are not historical facts made in this press release may be forward looking statements subject to risks and uncertainties. Statements containing words such as "will", "could", "expect", "may", "anticipate", "believe", "intend", "estimate", "plan" and other similar expressions are forward-looking statements that represent management's beliefs at the time the statements are made and are based on certain factors and assumptions including wind farm construction and commercial production schedule, output and capacity, revenue and earnings expectations and market potential. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties involving the availability of financing; fluctuations in currency exchange rates; uncertainties relating to economic and market conditions; uncertainty of estimates of capital and operating costs; the need to obtain additional financing to develop the projects and uncertainty as to the availability and terms of future financing; the possibility of delay in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the information circular dated November 2, 2011, which is available at www.sedar.com under the Company's profile. Except as required by applicable securities laws, the Company undertakes no obligation to update any forward looking statement to reflect events or circumstances after the date on which such statement is made.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
China Wind Power International Corp.
Chief Financial Officer