120b yuan credit offered for power grid projects

BEIJING - China Development Bank (CDB) on Friday signed a strategic cooperation agreement with the China Southern Power Grid (CSG) to raise 120 billion yuan ($19.1 billion) in funding by the end of 2015 to finance the grid's projects.

According to the agreement, the funds will mainly support network construction and upgrades, a west-to-east electricity transmission project and the company's overseas investment, as well as the issue of commercial papers and corporate bonds.

According to CDB data, the lender has thus far granted loans totaling 40 billion yuan to CSG, with more than 13 billion yuan still outstanding.

Incorporated in 2002, CSG invests in, constructs and operates power networks in the five provincial-level regions of Guangdong, Guangxi, Yunnan, Guizhou and Hainan.

Last year, CSG posted business revenues of 380 billion yuan with fixed-asset investment of more than 90 billion yuan.