CITIGROUP Inc may sell part of a loan it's providing for China Petroleum and Chemical Corp (600028. SH) and ENN Energy Holdings Ltd's bid for China Gas Holdings Ltd to other banks, two sources said yesterday.

A decision on whether to syndicate the facility has not yet been made, one of the people said, asking not to be identified as the details are private.

Citigroup is providing a so-called bridge loan to ENN Energy, according to a joint statement released yesterday in Hong Kong by Sinopec, as China Petroleum is commonly known, and ENN Energy. A bridge loan is a short-term loan that is usually replaced by longer-term financing.

The loan will be split into two parts, one to fund the acquisition of shares as well as costs, fees and expenses related to the offer, and the other to refinance or repay a US$150 million loan signed by ENN Energy in November 2009, according to the document.

The first part will mature five months after the funds are first used while the second will mature on May 31, according to the statement.
 

Source:shanghaidaily