ChinaSoft International Secures US$100 Million Financing to Support its Investment in Emerging Technology
BEIJING and HONG KONG, Nov. 4, 2013 /PRNewswire/ -- ChinaSoft International Limited ("ChinaSoft" or "the Company") (SEHK: 354), a leading IT solutions and outsourcing service provider in China, today announced that the Company has entered into an agreement with a group of institutional lenders, including Deutsche Bank AG and Mega International Commercial Bank Co., Ltd., for an aggregate amount up to US$100 million term loan facility (the "Syndicated Loan") for three years. The Syndicated Loan will bear interest at the rate of LIBOR + 2.95% per annum.
By securing this US$100 million financing, the Company will have obtained strategic expansion capital for M&A, especially in areas of next generation technology and cloud, as well as additional working capital for our existing business.
Seeking debt financing also highlights ChinaSoft management's consideration on capital structure, since debt is a less expensive source of capital compared to equity. With interest rate still at historical lows, the Company looks to exploit current rate environment to further its strategic goals.
ChinaSoft strongly believes that all over the world the IT services business model is changing due to the evolution of information technologies like cloud computing, social networking, mobile communications and big data analytics. As part of its growth strategy set in 2011, ChinaSoft embraced the Professional, Outsourcing and Emerging (POE) structure. The Company will pursue growth in its traditional IT professional consulting & solutions business (P) and outsourcing business (O) while pushing into innovative and emerging technologies (E) such as cloud computing and mobile communications. The Company believes that this transformation is in alignment with the strategies of its customers such as Alibaba, China Mobile, Huawei and Microsoft.
About ChinaSoft International Limited (SEHK:354)
Founded in 2000, ChinaSoft International Limited is a listed company on the Hong Kong Stock Exchange with its code of 354.HK. It is a large China based comprehensive software and information services provider, ranging from end-to-end services of consulting, solution, outsourcing and talent training. It serves clients in manufacturing, finance, telecommunication, high-tech, transportation, energy and also the government. The Company provides global services to over 100 multinational companies with close to 19,000 employees located worldwide based in 25 cities including mainland China, Hong Kong, Princeton, Seattle, London, Tokyo and etc. For more information, please visit www.chinasofti.com.
SOURCE ChinaSoft International Ltd.