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Green Dragon Gas seeks funding for coalbed methane project

World Coal,


Green Dragon Gas Ltd, an independent company involved in the production and sale of coalbed methane (CBM) gas in China, has issued its first public corporate bond into the debt capital markets and closed this initial issue at US$88 million.

This funding allows the company to launch its drilling programme of 150 LiFaBriC wells at the commercial gas production block Shizhuang South (GSS) with up to 50 wells being funded through this closing.

The company is looking to support its CBM operations at the Shizhuang South project.

The bond is a senior-secured three-year paper, due 20 November 2017. It carries a 10% cash payment and is redeemed at 102 par. The company has a right to redeem the bond early for 107,105,103 at the 12-, 18-, 24- and 30-month anniversaries. The bond is secured by a pledge over the shares of Greka Gas China, a wholly owned subsidiary of Green Dragon Gas.

Edited from various sources by Sam Dodson

Read the article online at: https://www.worldcoal.com/cbm/08012015/green-dragon-gas-seeks-funding-for-cbm-project-cbm185/

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