Chinese beer maker Kingway Brewery has entered into an agreement to secure a US$38m loan for business expansion.

Kingway chairman Ye Xuquan said in a statement that the loan was payable over four years. However, he did not disclose the terms of the loan nor the identity of the bank that would provide the credit facility.

Kingway was earlier this week named as a likely takeover target for domestic and international brewers by industry analysts. The number of attractive targets in China's consolidating beer market is dwindling. The country's eighth-largest brewer, Fujian Sedrin, is reported to be close to being sold to InBev for around US$750m.

Kingway's base in China's wealthy Guangdong province and 65% market share of the booming city of Shenzhen has made the brewer a potential target. Heineken owns a 21% stake in Kingway but talks to lift its stake have stalled after failing to reach an agreement with the company's owners.