BG Group signs MOU with Bank of China for $1.5billion funding

June 27, 2011 | Asia, Budget & Investment

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BG Group Plc, a natural gas company, said Monday that it has signed a key cooperation agreement with Bank of China Ltd to enhance the existing close working relationship between the organizations and also allows for up to $1.5 billion of new funding options to support the Group’s major growth program.

The Memorandum of Understanding or MoU signed Monday builds upon existing commercial relationships between BG Group and Bank of China and confirms the intention to make extended credit facilities available that can be used to help deliver the Group’s global growth plans – including its operations in China where the Group has an established commercial presence and where an initial offshore exploration program is underway.

The MoU also identifies other areas of potential cooperation including investment banking services, derivatives products, bank deposits, insurance and international settlement and trade finance facilities.

Separately, BG Group already has a $200 million lending facility in place with Bank of China which is just one of a series of committed lending facilities that the company has with a group of international banks. These lending facilities in aggregate have been recently increased and extended and now total $4.4 billion.