Monday April 6, 08:32 AM
HSBC to fund Shanghai Electric's expansion plans
SHANGHAI (AFP) - Banking giant HSBC (LSE: HSBA.L - news) said Monday it had signed a 250-million-dollar financial service agreement with Shanghai Electric Group to support the Chinese power equipment maker's global expansion.
Under the agreement, HSBC will provide Shanghai Electric and its units with a global facility limit of 250 million dollars to meet their financial needs, HSBC said in a statement.
The funds could be used for spot and forward foreign exchange deals, working capital, and import and export services, it said.
"The ongoing financial crisis poses challenges for corporates but also brings about opportunities. We are confident that we will sustain our growth amid the crisis," Xu Jianguo, chairman of Shanghai Electric Group said.
The agreement will "help enhance our risk management in our overseas expansion," he said in the statement.
Shanghai Electric, China's biggest power-equipment maker by capacity, has recently secured market share in India, Pakistan, Indonesia and Kazakhstan.
It "is also actively exploring other overseas markets including South American (SAC.TO - news) countries", according to the statement.
The company said in January it expected its 2008 net profit to fall short of its target of 2.9 billion yuan (420 million dollars) by 10 to 13 percent after customers requested a delay in product deliveries because of a weaker economy.
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