Fortune Oil Arranges Loan

Fortune Oil has arranged a $180m loan which will be used to acquire acquisitions natural gas and coal bed methane assets in China.

The new agreement was signed by the group's principal intermediate holding company in Hong Kong, Fortune Oil PRC Holdings.

The facility is denominated in US Dollars with a term of three years and a margin of 2.6% over LIBOR.

The facility is guaranteed by Fortune Oil and secured by share charges over its various Hong Kong subsidiaries.

Morgan Stanley Asia was the global coordinator and facility agent bank.

A total of 13 Asia-Pacific regional banks participated in the transaction and the facility was over-subscribed.

The proceeds will be used to repay the $80m facility arranged by Standard Chartered Bank (Hong Kong) in April 2010.

The balance of $100m will be applied towards acquiring assets in China including natural gas, coal bed methane, resources and for general working capital requirements.