Five Chinese banks ready to arrange $1 billion loan for Tangguh

Five Chinese banks will have the chance to jointly arrange a US$1 billion loan, which will fund the development of Tangguh gas field, the Bisnis Indonesia newspaper reported in its Tuesday edition.

This amount is part of the total investment of $3.6 billion needed for the project.

The five banks – Agricultural Bank of China, China Construction Bank, Development Bank, Industrial & Commercial Bank of China and Export-Import Bank of China – will possibly jointly manage the loan, the Project Finance International magazine reported without mentioning the source of the news.

Tangguh is jointly managed by BP Plc. and CNOOC Ltd.

Meanwhile, Japan Bank for International Cooperation and Asian Development Bank are also arranging two loans for the Tangguh project, including the guarantee from project’s sponsor.

Bank of Tokyo Mitsubishi Ltd. Mizuho Corporate Bank Ltd. Sumitomo Mitsui Banking Corporation and Societe Generale SA will probably join the ADB in facilitating the loan. (*)