Santandar banking arm wins advisory role for gas deals

Santandar Investment Asia (SIA), the Hong Kong investment banking arm of Spanish Santandar banking group, has been appointed by a mainland company as financial adviser for two liquefied petroleum gas projects worth US$2.26 billion.

The appointment requires SIA to assess the projects' financial viability, identify potential international investors, develop financial options and offer negotiation support for the Shanghai company.

SIA managing director Joseph Lai declined to reveal the name of the company, but industry sources said it was Shanghai Energy and Chemical Corp, a government-backed petrochemical company.

He said the two projects were the biggest on which SIA had acted as financial adviser since it branched into the business a year ago. Last year, it was adviser for four transport projects worth US$250 million.

It is negotiating other projects, one of which, a water-treatment plant, will be announced shortly. 'Our major business areas basically conform with those promoted under the country's five-year plan,' Mr Lai said.

Santandar, Spain's biggest banking group and the world's 45th biggest, opened a representative office in Shanghai yesterday, its second in China.