A critical element of all successful projects is the establishment of a sound financing arrangement in support of the engineering, procurement and construction activities. On September 9, the signing ceremony of FREP Refining & Ethylene Project Expansion Finance was held in Fuzhou. Lu Dong, Chairman and President of FREP, Zhu Chunhua, President of Industrial and Commercial Bank of China Fujian Branch, Peng Hongming, President of China Construction Bank Fujian Branch, Huang Huiyan, Vice President of Bank of China Fujian Branch, Zeng Liqing, Vice President of China Development Bank Fujian Branch, Ma Tenghui, deputy general manager of VIP client department of Agricultural Bank of China Fujian Branch, Kang Jing, deputy manager of Sinopec Finance CO., LTD Shanghai Branch, Liu Hongtao, Vice President of Bank of Communications Beijing, Asian Sports Village Sub-branch, as well as other leaders attended the signing ceremony. . And Joe Francis, General Manager of Finance Department of FREP, held the signing ceremony.

President Lu Dong delivered a speech. He said that the construction and development of FREP depended on the sincere cooperation and strong backing of all shareholders as well as the strong support of various financial institutions; and in order to maintain FREP’s sustainable, stable and healthy development, each shareholder strongly promoted the investment and construction of SCDP Project, hoping to maximize FREP’s economic benefits through increased chemical complex capacity to optimize the product mix and increase the proportion of chemical products with a relatively small investment.

He expressed that he hoped the cooperation of the banks and FREP could be based on the principle of “sincere cooperation, integrity and high efficiency” to strengthen communication and coordination and actively give play to the advantages and specialties on financing management and funds supervision of various financial institutions, to accomplish the required funds management for the revamp and expansion projects. And as the Owner of the Project, FREP would conduct more scientific management, that is, on one hand, FREP would arrange capital investment reasonably and try to improve capital usage efficiency and ensure capital safety; on the other hand, FREP would organize the site construction well, promote the engineering construction of the Project safely, efficiently and actively to reduce the loan risk.

He hoped that with the close cooperation and joint efforts of banks and FREP, the two parties would certainly set an example of sincere cooperation between the Owner of the Project and financing banks, to promote the rapid and sound development of FREP and achieve win-win cooperation between banks and FREP together through constantly consolidating the previous cooperative base and actively exploring new cooperative fields.

At the ceremony, President Lu Dong signed the FREP Project Expansion Finance Agreement with representatives from seven banks.

The Expansion Project includes three sub-projects with a total investment of around RMB 5.856B, including Oil Product Quality Upgrading and Crude Oil Adaptability Improvement Project, Steam Cracker Debottleneck Project and New Chemical Unit Project, whose Feasibility Study Reports all have acquired the official approval from Sinopec Group. Shareholders’ investment accounted for one third of the total estimated costs (approximate RMB 1.952B) while the banks covered two thirds of the estimated costs and also included a standby facility for a total loan of RMB 4.623B.