From Earlier: China Recycling Energy Corp. Receives RMB 130M Loan

China Recycling Energy Corp.

today announced that its wholly-owned subsidiary, Xi'an TCH Energy Technology Co., Ltd., has obtained an energy saving and emission reduction loan with Industrial Bank Co., Ltd., Xi'an Branch , whereby the Lender agrees to loan RMB 130,000,000 (approximately USD $20,312,500) to Xi'an TCH for a term of 48 months (16 quarters) from the first take-down of the loan. The first 9 months (3 quarters) of the loan will be a grace period where repayment is not requirement. Xi'an TCH will start to make repayment on the 28th day of the last month of each quarter after the grace period and each payment will include principal in no less than RMB 10,000,000 (approximately USD $1,562,500). The loan agreement has a floating interest rate that resets each quarter at 115% of the national base interest rate for the same term and same level loan per annum. The present national base interest rate -- People's Bank of China rate is 7.05% and 115% of that rate will be 8.1075% per annum. These funds will be deployed by CREG to further the construction of a 23 MW waste-to-energy system for its customer Shanxi Datong Coal Group. With the new special energy saving and emission reduction loan to fund the development of its energy saving projects at a much lower interest rate, the Company will then initiate the repayment of RMB 75,000,000 in convertible notes and trust loans held by China Cinda Asset Management Co. Ltd and its affiliates. The original financing of RMB 100,000,000 was completed under a Note Purchase Agreement and a Trust Loan Agreement as a part of the strategic cooperation agreement signed on August 18, 2010. The interest rate on the convertible notes and trust loan under August 2010 agreements was 18% per annum unless the Cinda chooses to convert such notes and loans to common stock shares of the Company. Following the repayment, Cinda will still hold RMB 25,000,000 convertible note in CREG and a seat on the Company's Board of Directors. Cinda will continue their strategic partnership with the Company in regards to current and future project development and financing of these projects.