China Gas secures USD 450 mln loan from ADB

China Gas Holdings said it has entered into a long-term loan facility of up to US$450 million with the Asian Development Bank.

Constituted under A+B loan structure, the A loan is a US$150 million 10-Year low-interest special loan. The Group is to raise the B loan of a total of US$300 million at appropriate time according to its business development needs and financial market conditions. This is the third loan secured with ADB after China Gas’ previous financing facilities in 2006 and 2010, indicative of ADB’s full support for the Group in its effort to expand its clean city gas business.

Pursuant to the loan agreement, China Gas will use the proceeds to develop its gas refilling station projects for vehicles and vessels, i.e., constructing compressed natural gas and liquefied natural gas refilling stations in China for provision of CNG/LNG services to vehicles and vessels. Natural gas used as sustainable clean energy can largely reduce the emissions of sulfur dioxide and nitrogen oxide, making it a high-quality substitute fuel for vehicles and vessels with collateral environmental and social benefits. To date China Gas has built more than 450 refilling gas stations for vehicles and vessels across China with more than 1,000 such stations expected to be constructed by 2017.

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Press Release; Image: China Gas