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Primeline signs off gas field finance package

China–focused gas group Primeline (CVE:PEH) has signed off the project finance required to complete the LS36-1 gas field development.

A syndicate jointly led by China Development Bank and China Export and Import Bank with Shanghai Pudong Development Bank as participant and agent bank has arranged the US$274mln facility.

The loan is split US$ 205.5mln with Primeline and US$68.5mln with its affiliate PPC and repayable over 9 years at an all-in interest rate of 6 month LIBOR plus 4.7%.

First drawdown is expected around the end of November.

The LS36-1 gas field is 51% owned and operated by China National Offshore Oil Corporation. Primeline company has 36.75% of the project, while PPC has the remaining 12.25%.

Once the loan has been drawdown and CNOOC repaid, Primeline and PPC expect to receive a significant amount of income for their shares of the sales revenue that has been generated during a trial production period.

Proactiveinvestors UK
Published on:
November 19, 2014
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