Chinese gas company seeks financing from IFC
China Tian Lun Gas Holdings Limited (TLG) is seking financing from the International Finance Corporation (IFC), a member of the World Bank.
TLG, which was founded by entrepreneur Mr. Zhang Yingcen in 2002, is a Cayman Islands-incorporated and Zhengzhou-headquartered fast-growing natural gas distributor company. The company was listed on the HKSE in November 2010.
The proposed investment to TLG consists of:- an A Loan of up to US$40 million of IFC A loan;
- a MCPP loan of up to US$20 million;
- an equity investment up to $75 million; and
- a potential equity investment of up to $75 million from IFC’s Asset Management Company, Global Infrastructure Fund.
The proceeds of the proposed financing will be used to help finance the company’s 2015-2018 capital expenditure programs which include: the expansion and acquisition of city gas concessions, construction of CNG and LNG refueling stations and construction of LNG plants.
The total project cost is approximately US$353 million, to be financed by IFC/AMC equity investment, IFC A Loan, loans from several Taiwanese banks, as well as internally generated cash.
The project will help improve lives of a large population in third-tier cities and frontier regions in China by laying the infrastructure to provide access to affordable and clean energy.
