I like this bit The funding followed extensive due diligence by HSBC on its projects
Dart Energy finalises US$100 mln loan for international arm Wednesday, August 29, 2012 The funding has been earmarked initially for its Scotland-based coal bed project PEDL 133, Liulin in China and the Sangatta West project in Indonesia.
Unconventional gas group Dart Energy (ASX:DTE) has finalised a US100 mln loan facility with HSBC to develop its international division’s portfolio of assets.
The Australia-listed group will receive US$10 mln immediately for working capital and up to US$90 mln over the next two years.
The funding has been earmarked initially for its Scotland-based coal bed project PEDL 133, Liulin in China and the Sangatta West project in Indonesia.
John McGoldrick, Dart Energy International’s chief executive, said he believed it was the first reserve based lending facility for coal bed methane projects in Europe or Asia.
The funding followed extensive due diligence by HSBC on its projects and McGoldrick said he was encouraged by the confidence the bank had shown in its business.
The facility is secured against Dart International’s assets in Europe, China and Indonesia and also its interest in PEDL 133 in Scotland. The facility is on a non-recourse basis to parent company Dart Energy.
DTE Price at posting:
17.9¢ Sentiment: LT Buy Disclosure: Held
