Gigasun is taking another step in its refinancing in China and today announces a new loan facility of MCNY 100.
The loan will replace an existing facility that carries an interest rate of 6.8 percent over a maturity of 7 years. The new facility significantly improves conditions:
The reduced interest rate is expected to reduce the Company's interest expense and thereby improve earnings by approximately MCNY 2 (approximately SEK 2.8 million) annually.
Comment from the CEO Max Metelius:
"This is another important step in the refinancing for Gigasun. By lowering the interest cost and extending the maturity from seven to ten years, we free up significant cash flow through reduced amortization, while the structure is simpler and more capital efficient than in previous financing. This is another example of how we are actively working to optimize our capital structure.”