BANK BORROWINGS

12 Months Ended

Dec. 31, 2022

12. BANK BORROWINGS

On September 27, 2022, the Group entered into a $111 million (RMB800 million) loan facilities agreement with a group of lenders led by a PRC Bank (the "2022 Facility Agreement"). The 2022 Facility Agreement has an effective drawdown period until June 9, 2023 and the interest rate is prime plus 115 basis points where prime is based on Loan Prime Rate published by the National Inter-bank Funding Center of the PRC. The interest is payable on a quarterly basis. The loan facilities can only be used for the construction project of manufacturing capacity expansion at the Group’s facility located in Huzhou, China. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without the consent of the lender, and certain customary events of default.

As of December 31, 2022, the Group had outstanding borrowings of $43,496 under the 2022 Facility Agreement and the table below is the repayment schedule.


Repayment Date						Repayment Amount
June 10, 2023						$4,349 (RMB30 million)
December 10, 2023						$10,149 (RMB70 million)
June 10, 2024						$14,499 (RMB100 million)
December 10, 2024						$14,499 (RMB100 million)

The amount of interest expenses capitalized, which was recorded in the construction in progress and the property, plant and equipment, was $ nil and $492 as of December 31, 2021 and 2022, respectively.

The Group has also entered into short-term loan agreements and bank facilities with Chinese banks. The original terms of the loans from Chinese banks are within 12 months and the interest rates range from 4.50% to 4.75% per annum.

Changes in bank borrowings were as follows:


	Year Ended December 31,
	2020		2021		2022
Beginning balance	$	11,922	$	12,184	$	13,301
Proceeds from bank borrowings	17,308		38,926		58,708
Repayments of principal	(17,815)		(37,568)		(24,482)
Exchange difference	769		(241)		(1,132)
Ending balance	$	12,184	$	13,301	$	46,395


Balance of bank borrowings includes:	December 31, 2021		December 31, 2022
Current	$	13,301	$	17,398
Non-current	—		28,997
Total	$	13,301	$	46,395

Certain assets of the Group have been pledged to secure the above banking facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2021 and December 31, 2022 were as follows:


	December 31, 2021		December 31, 2022
Buildings	$	31,361	$	27,245
Machineries and equipment	7,376		—
Land use rights	4,470		12,639
Total	$	43,207	$	39,884