Reuters reported that state owned coal producer Shenhua Group Corp Ltd is seeking a CNY 30 billion syndicated loan to back its acquisition of State Grid Energy Development Co Ltd.

Banking sources said that Agricultural Bank of China is leading the financing, while China Construction Bank and Industrial & Commercial Bank of China are expected to be in the lending group.

Sources said the final lender group could involve around 10 banks.

Shenhua had invited banks to bid for the financing in late May which attracted more than 20 lenders vying for the leading role, according to sources.

Shenhua announced last week that it has agreed in principle to buy a 100% stake in State Grid Energy from State Grid Corp of China.

Source - Reuters

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