China CNOOC in $1.6 bln loan for Nigeria project

[Richard Akindele]

HONG KONG, June 2 (Reuters) - China's top offshore oil and gas producer, CNOOC Ltd. (0883.HK: Quote, Profile, Research), said on Friday it had signed for a 12.8 billion yuan (US$1.6 billion) loan with a mainland bank to help finance a project in Nigeria.

State-controlled CNOOC (CEO.N: Quote, Profile, Research) said its unit had agreed the loan with the Export and Import Bank of China (China EXIM Bank). The loan has a tenor of 10 years and the interest rate is fixed at 4.05 percent.

Proceeds would be used to fund its ongoing capital needs in Nigeria and to meet the general capital expenditure requirements of other projects, the company said.

CNOOC announced its biggest-ever $2.7 billion overseas acquisition for a 45 percent stake in a major offshore field in Nigeria early this year. In late April, CNOOC raised nearly $2 billion through a share sale.

Following the loan agreement, CNOOC said its debt to capitalisation ratio would be under 25 percent.

Chief Financial Officer Yang Hua said in a statement the financing would further optimise the company's capital structure.

Shares in CNOOC closed up 1.72 percent on Friday at HK$5.90 in line with gains in the benchmark Hang Seng Index <.HSI>. The stock had fallen more than 7 percent in the month ended Thursday.

(Us$=8.023 yuan)