CLP’s EnergyAustralia Markets A$2.1 Billion Loan in Syndication

EnergyAustralia Holdings Ltd., a unit of Hong Kong-listed CLP Holdings Ltd., is syndicating A$2.1 billion ($1.9 billion) of loans to refinance debt, a person familiar with the matter said.

The facility is divided into a A$700 million three-year loan, a A$700 million four-year loan and a A$700 million five-year loan, the person said, asking not to be identified because the details are private. The company will pay interest margins based on its credit rating, the person said.

In October, Standard & Poor’s downgraded EnergyAustralia’s credit rating to BBB- from BBB on concerns about the company’s financial strength. S&P and the two other main ratings companies last month warned that parent CLP Holdings, Hong Kong’s biggest power supplier, could be downgraded on plans to largely finance a HK$14 billion ($1.8 billion) purchase of stakes in two Exxon Mobil Corp. units with debt.

Emma Tyner, a Melbourne-based spokeswoman for EnergyAustralia, was unable to immediately comment when contacted by phone and e-mail.

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