The board of directors of Xtep International Holdings Limited announced that on 3 January 2017, the Company as borrower entered into a facility agreement with a consortium of nine banks which is arranged by Hang Seng Bank Limited (HASE), The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong) Limited, Industrial and Commercial Bank of China (Asia) Limited and CTBC Bank Co. Ltd. as mandated lead arrangers and bookrunners, pursuant to which a 3.5-year dual currency term loan facility in the principal amount of USD 116,000,000 and HKD 651,000,000 (equivalent to approximately HKD 1,555,800,000 in aggregate) was made available to the Company on the terms and conditions stated therein. The purposes of the Facility are: (i) to take advantage of the relatively low financing cost to refinance in full an existing dual currency term loan facility in the principal amount of USD 92,000,000 and HKD 452,400,000; and (ii) to finance the general corporate requirements of the Company and its subsidiaries. The Facility is guaranteed by certain subsidiaries of the Company.