Dec. 12 (Bloomberg) -- China Everbright International Ltd., a Hong Kong-based renewable energy developer, is targeting to sign a $100 million loan with seven to eight banks by the end of the year, a person familiar with the matter said.
The $100 million facility is being arranged and underwritten by Mizuho Corporate Bank Ltd., the person said, asking not to be identified as the details are private. The facility is the commercial bank portion of $200 million in so- called A/B financing from the Asian Development Bank, said the person. The ADB agreed to provide the funding two years ago.
In A/B financing, a borrower signs a single agreement with a development bank, which retains a part of the loan and distributes the rest to commercial banks. Commercial banks don’t have recourse to the development bank, the lender of record, in a default.
Proceeds will be used to develop waste-to-energy plants in China, the person said. The sites include cities across the nation’s Yangtze River Delta, Pearl River Delta and Bohai Rim region, and will create electricity by incinerating waste.
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