June 15, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — American Lorain Corp. (AMEX: ALN), a Chinese processed snack foods and convenience foods manufacturer, said that it has secured a $15 million bank loan from a German development bank,  Deutsche Investitions-und Entwicklungsgesellschaft MBH.

Chen Si, CEO of American Lorain, said that, while his firm deemed that selling shares to access growth capital would provide adequate, “…considering the current conditions of equity markets, it is not prudent to proceed with a equity raise at this time.” A bank loan was determined to be the appropriate vehicle for financing the firm’s chestnut operations at the present time.

He said that the firm’s primary product, chestnuts, is enjoying a growth cycle both domestically and in international markets. American Lorain's chestnut processing facility, Junan Hongrun, was the direct recipient of the loan, which was collateralized by the facility's assets.

The loan is six-year term with an interest rate of LIBOR plus 3.75%.  

Germany-based DEG, a member of KfW Bankengruppe (KfW banking group), finances investments of private companies in developing and transition countries.

China-based American Lorain develops, manufactures and sells various food products. The company's products include chestnut products, convenience food products and frozen food products.

The company currently sells over 230 products to 26 provinces and administrative regions in China as well as to 42 foreign countries.

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