Item 1.01. Entry into a Material Definitive Agreement.
On May 9, 2014, Beijing ZhongRan WeiYe Gas Co., Ltd. (the "Company"), a 100%
owned PRC subsidiary of Sino Gas International Holdings, Inc., entered into a
loan agreement with Zhongyu (Henan) Energy Holdings Limited (the "Lender") (the
"Agreement") pursuant to which the Lender will grant a loan facility (permitting
multiple one-year term drawdowns) to the Company in a total amount not exceeding
RMB 50,000,000 (approximately USD $8.0288 million based on the prevailing spot
USD-RMB exchange rate) for the Company to use as working capital (the "Loan")
and the Company will pay the Lender an interest on the outstanding loan amount
computed at a rate equal to 8% per annum (the interest payment will be made
monthly). To secure the Loan, pursuant to the Agreement, the Company will pledge
its dividend right attached to the 40% equity interests of the Company in
ZhongRan Xiangke Oil and Gas Technology Co., Ltd. (a 40% owned PRC joint venture
entity of the Company) to the Lender.
The Agreement is hereby filed as Exhibit 10.1 to this Current Report on Form
8-K. The foregoing summary of the terms of the Agreement is subject to, and
qualified in its entirety by, the Exhibit attached hereto, which is incorporated
herein by reference.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth above under Item 1.01 is hereby incorporated by
reference into this Item 2.03.