China Gas Holdings Limited, a leading Chinese piped-gas operator, said it has signed a multi- million financial agreement with Asian Development Bank (ADB) Thursday.

 

According to the agreement, ADB will provide a financial assistance of approximately US$150 million to China Gas, including a US$50 million of direct loan, subscription of approximately US$24 million worth of shares of China Gas and a US$75 million syndicated loan led by ADB.

 

The share subscription part will involve 150 million new ordinary shares issued by China Gas at HK$1.25 per share, and be subject to a lock-up period of two years.

 

After the transaction, ADB will become a long-term strategic investor of China Gas and own approximately 4.88 percent of its shares. In turn, ADB will appoint a senior management staff to be a non-executive director of China Gas.

 

(Xinhua News Agency September 1, 2006)