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BORROWINGS | 12 Months Ended
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Dec. 31, 2013
BORROWINGS [Abstract] |
BORROWINGS | 8. BORROWINGS The Group's bank borrowings consisted of the following:
|  | December 31, |
|  | 2012 |  |  | 2013 |
Short-term bank borrowings |  | $ | 49,748,800 |  |  | $ | 39,643,440 |
Long-term bank borrowings, current portion |  |  | 69,006,400 |  |  |  | 50,049,843 |
Other short-term borrowing |  |  | 1,524,560 |  |  |  | 29,177,574 |
Total borrowings, current |  |  | 120,279,760 |  |  |  | 118,870,857 |
Long-term bank borrowings, non-current portion |  |  | 187,520,880 |  |  |  | 134,870,287 |
Total |  | $ | 307,800,640 |  |  | $ | 253,741,144 |
Short-term borrowings The Group's short-term bank borrowing consisted of the following:
|  | December 31, |
|  | 2012 |  |  | 2013 |
Short-term borrowing guaranteed by Daqo Group |  | $ | 1,604,800 |  |  | $ | 28,080,770 |
Short-term borrowing guaranteed by Daqo Group and Mr. Guangfu Xu and Mr. Xiang Xu |  |  | 48,144,000 |  |  |  | - |
Short-term borrowing guaranteed by Daqo Group and a third party |  |  | - |  |  |  | 11,562,670 |
Total |  | $ | 49,748,800 |  |  | $ | 39,643,440 |
The Company has $nil and $18.2 million short-term bank facilities with various banks were available as of December 31, 2012 and 2013, respectively. The interest rate on the short-term bank borrowing was 7.0% and 6.4% as of December 31, 2012 and 2013. The other short term borrowing was discounted bank notes with recourse to the Company. Long-term borrowings The major bank borrows are as follows: On January 21, 2009, Chongqing Daqo entered into a six-year long term facility agreement with China Construction Bank. Such borrowing is restricted to the purchase of fixed assets and has a maximum borrowing amount $66.1 million (RMB400 million), bearing standard five-year long term interest rate issued by People's Bank of China. The borrowing is guaranteed by Daqo Group. As of December 31, 2013, Chongqing Daqo had drawn down $66.1 million (RMB400 million), repaid $60.0 million (RMB357 million) and had no facility available for future draw down. There are no financial covenants associated with the facility. On September 28, 2011, Chongqing Daqo entered into a four-year credit facility agreement with Huaxia Bank with maximum amount of $66.1 million (RMB400 million). Chongqing Daqo drew down $62.8 million (RMB380 million), including: $21.5 million (RMB130 million) with fixed interest rate of 6.65%, which is designated for working capital and $41.3 million (RMB250 million) with fixed interest rate of 6.9% which is restricted to the purchase of fixed assets. Chongqing Daqo used the remaining facility of $3.3 million (RMB20 million) through use of bank acceptance notes. As of December 31, 2013, Chongqing Daqo had repaid 27.1 million (RMB164 million) and had no facility available for future draw down. This credit facility is guaranteed by Daqo Group and also collateralized by Chongqing Daqo's land use right and plant, with a book value of $8.5 million (RMB52 million). The facility contains a covenant which requires the Company to maintain a certain debt to asset ratio, which Chongqing Daqo was in compliance with as of December 31, 2013. On September 30, 2011, Xinjiang Daqo entered into a six-year bank borrowing agreement with Bank of China. Such borrowing is restricted to the purchase of fixed assets and has a maximum borrowing amount of $161.9 million (RMB980 million) and bears interest at standard five-year long term interest rate issued by People's Bank of China plus 5%. The borrowing contains a debt to asset ratio financial covenant, which Xinjiang Daqo was in compliance with as of December 31, 2013. The borrowing is guaranteed by Daqo Group, Daqo New Material, two affiliated companies under Daqo Group and Mr. Guangfu Xu. As of December 31, 2013, Xinjiang Daqo had drawn down $123.9 million (RMB750 million) and had $38.0 million (RMB230 million) facility available for future draw down. The loan was in compliance with the covenants as of December 31, 2013. On October 26, 2011, Chongqing Daqo entered into a four-year credit facility agreement with Chongqing Rural Commercial Bank. Such borrowing is restricted to the purchase of fixed assets and has a maximum borrowing amount $40.6 million (RMB 245.5 million) and bears interest at three to five-year long term interest rate issued by People's Bank of China plus 10%. The borrowing is guaranteed by Daqo Group, and two directors of the Company. As of December 31, 2013, Chongqing Daqo had drawn down $40.6 million (RMB 245.5 million) and repaid $22.3 million (RMB 135 million). There are no financial covenants associated with the facility. The weighted average interest rate as of December 31, 2012 and 2013 for the Group's long-term bank borrowings was 7.2% and 7.2%, respectively. The principal maturities of these long-term bank borrowings as of December 31, 2013 are as follows:
December 31, |  | Amount |
2014 |  | $ | 50,049,843 |
2015 |  |  | 77,056,937 |
2016 |  |  | 57,813,350 |
Total |  | $ | 184,920,130 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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