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                                                                    EXHIBIT 4.16

                                                                 [CITIBANK LOGO]

Citibank, N.A.

Citibank Tower
Citibank Plaza
3 Garden Road
Central, Hong Kong

G.P.O. Box 14
Hong Kong

                                        Corporate Banking Group

April 7, 2000

Global-Tech Appliances Inc.
12/th/ Floor, Kin Teck Industrial Building,
26 Wong Chuk Hang Road,
Aberdeen, Hong Kong

Attn: Mr. John Sham - President and CEO
      ---------------------------------

Dear Mr. Sham,

Re:   Banking Facility Letter
      -----------------------

We are pleased to advise that a HKD50,000,000.00 (HKD FIFTY Million only) Short
Term Trade Facility has been made available to Global-Tech Appliances Group
subject to terms and conditions outlined) below:

Lender        :     Citibank, N.A. Hong Kong Branch ("the Bank")

Borrowers     :     Pentalpha Hong Kong Limited ("the Borrowers")
                    Wing Shing Products (BVI) Co Ltd

Guarantors    :     Global-Tech Appliances Inc. ("the Guarantor")

Facility      :     HKD50,000,000.00 (HKD FIFTY Million only) Short Term Trade
                    Facility with the following sublimits:

                    i)   HKD50,000,000.00 full sublimit for issuance of Letters
                         of Credit ("L/C"); up to 90 days Trust Receipt Loans
                         for purchases under L/C and Export Bills Negotiation to
                         cater for sales under L/C;

                    ii)  HKD30,000,000.00 sublimit for up to 90 days import
                         invoice financing to cater for open account purchases;

                    iii) HKD2,000,000.00 sublimit for short term money market
                         loan and overdraft;

                    iv)  USD500,000.00 (USD FIVE Hundred Thousand only) Pre-
                         settlement risk* facility for booking of foreign
                         exchange contracts. Maximum tenor of FX contracts: 360
                         days.

                         *The pre-settlement limit is calculated by the Bank and
                         differs for each transaction depending on the nature
                         and tenor of the contract.
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Pricing    :   a)  L/C issuance
                   ------------

                   1/4% on first USD50,000.00
                   1/16% on balance,
                   Minimum HKD450.00


                       Organised under the laws of U.S.A. with limited liability
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                                                                 [CITIBANK LOGO]

Global-Tech Facility Letter
April 7, 2000

         b)  TR loan/Invoice financing/Export Bills Negotiation/Short Term
             Money Market Loan

                 For HKD drawing: HKD prime or 2% p.a. over 1, 2 or 3-month HKD
                                  Hibor or Citibank HKD cost of funds, whichever
                                  is higher

                 For USD drawing: USD Prime or 2% p.a. over 1, 2 or 3-month USD
                                  Libor or Citibank USD cost of funds, whichever
                                  is higher

              c) Overdraft

                 For HKD drawing: HKD Prime +1%
                 For USD drawing: USD Prime +1%

Documentation to be obtained:
-----------------------------

1)  Acceptance of this Facility Letter together with its terms and conditions.
2)  Board Resolution from Borrowers and Guarantor validating acceptance of the
    facility together with the terms and conditions as outlined herein.

Documentation obtained:
----------------------

1)  Continuing Guaranty / Letter of Set-Off dated 4/7/2000 for HKD50,000,000.00
    trade facility from Global-Tech Appliances Inc. in support of Pentalpha Hong
    Kong Limited and Wing Shing Products (BVI) Co Ltd.
2)  Board Resolution dated 4/7/2000 from Global-Tech Appliances Inc. validating
    Continuing Guaranty / Letter of Set-Off dated 4/7/2000 for HKD50,000,000.00
    trade facility extended to Pentalpha Hong Kong Limited and Wing Shing
    Products (BVI) Co Ltd.
3)  Advance Agreement/ General Letter of Hypothecation/ Set-Off dated 4/7/2000
    from Pentalpha Hong Kong Limited.
4)  Advance Agreement/ General Letter of Hypothecation/ Set-Off dated 4/7/2000
    from Wing Shing Products (BVI) Co Ltd.
5)  Continuing Agreement for Letters of Credit dated 4/72000 from Pentalpha Hong
    Kong Limited.
6)  Continuing Agreement for Letters of Credit dated 4/7/2000 from Wing Shing
    Products (BVI) Co Ltd.
7)  Export Bills Agreement dated 4/7/2000 from Pentalpha Hong Kong Limited.
8)  Export Bills Agreement dated 4/7/2000 from Wing Shing Products (BVI) Co Ltd.

It is our customary practice that we reserve the overriding right to modify or
cancel the aforesaid credit facility and their terms and conditions anytime at
our discretion without prior notice. Under normal circumstances, however, we
will review the credit facility on a periodic basis. Kindly indicate your
acceptance of the above terms and conditions by signing and returning the
duplicate copy of this letter at your earliest convenience.

Thank you for banking with Citibank, N.A. and we look forward to building a
close relationship in the years ahead. Please feel free to contact us should you
have any questions regarding our wide spectrum of services.

Yours sincerely,

   /s/  Anna Wong
-------------------------
Anna Wong
Vice President
Local Corporate Division Head


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                                                                 [CITIBANK LOGO]

Global-Tech Facility Letter
May 10, 2000

The above Terms and Conditions are Agreed and Accepted by:

For and on behalf of                      For and on behalf of
GLOBAL-TECH APPLIANCES INC.               PENTALPHA HONG KONG LIMITED


 /s/  John C.K. Sham                       /s/  John C.K. Sham
----------------------------------------  --------------------------------------
Global-Tech Appliances Inc. (Guarantor)   Pentalpha Hong Kong Limited (Borrower)


For and on behalf of
Wing Shing Products (BVI) Company Ltd.

 /s/  John C.K. Sham
------------------------------------------
Wing Shing Products (BVI) Co Ltd (Borrower)



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