The Industrial Bank Co., Ltd (the “Company”) and all members of the Board of Directors hereby warrant that the information contained in this announcement is true, accurate and complete, and assume joint and several liabilities for any false representation, misleading statement or material omission.
I. Content of Transaction:
On February 4, 2008, in accordance with the deliberation and approval given by the sixth Meeting of the 6 th Board of Directors, the Company agreed to credit facility of RMB 1.8 billion to the China National Cereals, Oils and Foodstuffs Imp. & Exp. Corp (hereinafter referred to as COFCO) and COFCO Finance Corporation Limited. The credit is valid for one year. The line of credit is applicable to working capital loan in domestic and foreign currencies (maturity not exceeding three years), sight/usance letters of credit and import bill advance.
On August 18, 2008, in accordance with the deliberation and approval given by the 11th meeting of the sixth session of Board of Directors, the Company agreed to provide basic internal credit facilities of RMB2 billion to COFCO. The credit is valid for one year. The line of credit is applicable to investments in credit products such as short-term financing bills and unsecured corporate bonds, whose issuing body shall be COFCO. The Company shall incorporate the stock of bond investments whose issuing body is COFCO into overall control of the line of credit. With the approval of this related party transaction, COFCO has a cumulative exposure of RMB3.8 billion in the Company.
II. Matter of Vote Avoidance:
Related party director Chua Phuay Hee refrained from participating in the vote.
III. Impact of the Related Party Transaction:
This related party transaction is classed as the normal and comprehensive credit business of the Company. It has no significant adverse impacts on the normal operation and financial position of the Company.
Board of Directors of Industrial Bank Co., Ltd.
August 20, 2008