Reuters reported that China Sinopec Corp is seeking to refinance up to USD 4.5 billion worth of bilateral bridge loans put in place last June to back its purchase of a stake in Syncrude Canada Ltd.

Sinopec has held one-on-one meetings with seven to 10 banks, requesting individual presentations from lenders for the potential five-year refinancing, Basis Point, Thomson Reuters loans reporting group.

The report said given the size of the transaction, the borrower will likely form a wide mandated lead arranger group which will take the loan into general syndication.

The report added that Sinochem signed a USD 1 billion five-year loan in August that paid a top level all in of 109 basis points in general syndication via a margin of 100 basis points over Libor

Discussions between Sinopec and lenders were in early stages and bankers said that Sinopec may launch the loan at a smaller size and upsize to as much as USD 4.5 billion depending on market response.

Sinopec could not be reached for an immediate comment.

(Sourced from Reuters)