Yancoal Australia Limited
(ASX:YAL) has reached an agreement with major shareholder Yanzhou Coal Mining Company Limited for a $US250 million long-term loan facility.
Yancoal says the facility has a term of five and a half years, with the principal to be repaid in full at maturity.
The loan is unsecured with no covenants.
Yancoal says the purpose of the facility is to fund the repayment of $US100 million of existing debt in accordance with its terms as well as fund working capital and capital expenditure.
The announcement comes just days after Treasurer Joe Hockey removed certain foreign investment conditions placed on the Chinese state-owned enterprise that restricted its ownership of Yancoal.
Yancoal reported a $749 million net loss in fiscal 2013.
