Jan. 5 (Bloomberg) -- China Everbright International Ltd., a Hong Kong-based renewable energy company, is targeting to sign a loan for the development of waste-to-energy plants in China next week, said a person familiar with the matter.
The loan is being signed with about seven banks, said the person, who asked not to be identified because the details are private.
The facility being signed is the commercial portion of a $200 million A/B financing from the Asian Development Bank, said a person with direct knowledge of the deal on Dec. 12. 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. The ADB agreed to provide the funding two years ago.
The commercial portion, or so-called B loan, that is to be signed next week is $100 million and is being arranged and underwritten by Mizuho Corporate Bank Ltd., the person said last month.
Proceeds will be used to develop waste-to-energy plants in China. The sites include cities across the nation’s Yangtze River Delta, Pearl River Delta and Bohai Rim regions, and will create electricity by incinerating waste.
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