China Gas Holdings Limited, a leading Chinese piped-gas operator, said it has signed a multi- million financial agreement with Asian Development Bank (ADB) Thursday.

According to the agreement, ADB will provide a financial assistance of approximately US$150 million to China Gas, including a US$50 million of direct loan, subscription of approximately US$24 million worth of shares of China Gas and a US$75 million syndicated loan led by ADB.

The share subscription part will involve 150 million new ordinary shares issued by China Gas at 1.25 HK dollars per share, and be subject to a lock-up period of two years.

After the transaction, ADB will become a long-term strategic investor of China Gas and own approximately 4.88 percent of its shares. In turn, ADB will appoint a senior management staff to be a non-executive director of China Gas.

(Xinhua News Agency September 1, 2006)