The Asian Development Bank (ADB), along with 12
commercial banks, will provide China Gas Group with US$150 million
to finance the country's new natural gas distribution projects,
said ADB's Beijing office on Tuesday.
"This is the first time the ADB has supported such
projects in China and provided the country with a long-term local
currency debt financing arrangement," said Robert Bestani, director
general of the ADB's Private Sector Operations
The financial package includes an equity investment of
US$25 million, a loan of US$50 million from the ADB and US$75
million from 12 commercial banks.
The 12 commercial banks - including the Bank of China
(Hong Kong) Ltd., the CITIC Ka Wah Bank, the Bank of Overseas
Chinese and the Kookmin Bank - will share the benefits of ADB's
preferred creditor status.
The funds will be used to finance a series of new
natural gas distribution infrastructure projects in Chinese cities
through joint ventures with local governments and state-owned
enterprises, according to the ADB.
"With a strengthened capital foundation and greater
financing flexibility, China Gas will capture a larger market share
and better contribute to China's energy reforms," said Liu Ming
Hui, the company's managing director.
The ADB said the project was in line with China's
policy to encourage the private sector to participate in the
natural gas distribution sector and would help protect the
environment by promoting the use of natural gas and reducing
(Xinhua News Agency February 14, 2007)