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BioAmber secures $20 million loan for Sarnia plant

June 23, 2014, Minneapolis, Minn. - BioAmber Inc., an industrial biotechnology company producing sustainable chemicals, announced that its Canadian subsidiary BioAmber Sarnia Inc., a joint venture with Mitsui & Co., has secured a CAD$20 million commercial loan from a financial consortium led by Export Development Canada and including Farm Credit Canada and Comerica Bank.


June 23, 2014
By Canadian Biomass

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June 23, 2014, Minneapolis, Minn. – BioAmber Inc., an
industrial biotechnology company producing sustainable chemicals, announced
that its Canadian subsidiary BioAmber Sarnia Inc., a joint venture with Mitsui
& Co., has secured a CAD$20 million commercial loan from a financial
consortium led by Export Development Canada and including Farm Credit Canada
and Comerica Bank.

 

The CAD$20 million senior secured loan will bear interest at
an initial rate of 8%, tied to an agreed-on floating rate calculation from
disbursement.  The loan's principal will
be reimbursed over a period of six and a half years, commencing three (3)
months after the completion of the commissioning and start-up phase of the
Sarnia plant.

 

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The drawdown on the loan is subject to customary conditions,
including continued progress on the construction of the Sarnia plant.  The CAD$20 million will be used to complete
the ongoing construction of the Sarnia plant and fund its start up and
commissioning.

 

When completed in early 2015, the Sarnia plant will be the
world's largest bio-based succinic acid production facility.  The plant will convert Canadian agricultural
products into bio-based succinic acid, a value added building block chemical
that is used in a wide variety of everyday products.  BioAmber projects that over 90% of the 30,000
MT annual capacity will be exported.


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