Analysts raise questions over pace of fund-raising activities as utility secures a 20 billion yuan bank loan to fund projects
The flurry of fund-raising exercises at China Gas Holdings shows no sign of abating, with the mainland-based piped-gas supplier returning to the debt market with a 20 billion yuan bank facility, sources say.
A contract would be signed today between the company and China Development Bank, which would make the loan available at a favourable interest rate for more than 10 years, they said.
The fresh funds will add to its war chest of about $1.6 billion raised during the past year from placing shares and issuing convertible bonds.
'After placing shares to more than seven parties for funds, the company will rely more on debt financing to avoid the dilution effect on shareholders,' one source familiar with the latest deal said.
The money would be used to fund new projects, including 26 under negotiation, he added.
