Chindex Press Room
INDUSTRIAL EXCHANGE, INC.
BETHESDA, MARYLAND - January 26, 1995 - U.S.-CHINA INDUSTRIAL EXCHANGE, INC. (NASDAQ:CHDX), a leading exporter of American manufactured equipment to China announced the issuance by the Export-Import Bank of the United States, of Preliminary Commitments for $8.4 million in tied aid credits for the sale by the Company of equipment for projects in China. The Company said that work remained to be done, but that the issuance by Ex-Im of the Preliminary Commitments was the critical first step in a process f obtaining better financing terms for the purchase of the Companys products by Chinese buyers.
Under the terms of the action announced today, the tied aid credits would be available for the sale of equipment by the Company to development projects in specific geographic areas in China, including the major cities of Beijing, Shanghai and Tianjin. The Company had applied in May of 1994 for such a loan to be made to certain identified Chinese organizations in order to match and be competitive with offers being made by European suppliers for the sale of similar equipment on "soft" loan terms.
Addressing the question of next steps, a Company spokesman said: "We are having ongoing discussions with the Central authorities in China to structure arrangements which will allow the finalization of this financing program. A major Chinese Bank will be required to act as obligor or guarantor of the loans as well." The spokesman noted that there could be no assurances that all subsequent approvals both in China and at the Export-Import Bank would be forthcoming, but, assuming they were, this financing would result in substantial incremental sales for the Company in 1995.