Fortune Secures $50M Loan Facility
Fortune Oil PLC has signed a US$50-million loan facility for Fortune Oil PRC Holdings Limited, its principal holding company in Hong Kong.
The facility is a dual-currency (US dollars and Hong Kong dollars) term loan with a term of 3 years and a margin of 1.1% above LIBOR or HIBOR. The covenants are standard for this type of syndicated loan and the facility is guaranteed by Fortune Oil PLC.
The Mandated Lead Arrangers are Industrial and Commercial International Capital Ltd (ICIC) and Oversea-Chinese Banking Corporation Limited (OCBC) with OCBC Hong Kong Branch as Agent. A total of 18 international and regional banks participated in the transaction. The facility size was over-subscribed to US$50 million.
The proceeds will be used to finance Fortune Oil's investment requirements in the China energy sector. This will include further development of the Liulin CBM block, new opportunities in relation to the recovery and utilization of methane gas in Shanxi Province, new downstream gas projects and acquisitions, and new investments in the supply of refined products.
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