Sept. 15 (Bloomberg) -- China Everbright International Ltd., a renewable-energy project developer, hired Mizuho Corporate Bank Ltd. to arrange and underwrite a $100 million loan to develop waste-to-energy plants, a person familiar with the matter said.
The sites in cities across China’s Yangtze River Delta, Pearl River Delta and the Bohai Rim Region will create electricity by incinerating waste.
The loan is the commercial bank tranche of a $200 million so-called A/B financing from the Asian Development Bank, said the person, who didn’t want to be identified because terms are private. The ADB agreed to provide the funding two years ago, and commercial banks plan to sign the agreement by the end of the year, the person said.
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.
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