The three partners in Fujian Refining and Petrochemical Co - Exxon, Sinopec and Saudi Arabian Oil, also known as Aramco have raised CNY30 bln (US$4 bln) in funding - representing the largest-ever project financing for a Sino-foreign joint venture in China. Funding was provided by a group of 11 Chinese banks plus Sinopec's finance arm. Tenor for the long-term facilities will be 20 years for the yuan-denominated debt and 15 years for dollar-denominated loans. Debt was arranged on a limited recourse basis, comprising both long-term and working capital facilities denominated in yuan and US dollars. Using project financing means lenders can be repaid only from revenues generated by the project itself, and limits the liability of the ultimate owners in the event of default. The group of lenders comprises China Construction Bank Corp., Industrial and Commercial Bank of China Ltd., Agricultural Bank of China, Bank of China Ltd., China Development Bank, Industrial Bank Co., Bank of Communications Co., China Citic Bank Corp. Ltd., China Everbright Bank Co., China Merchants Bank Co., and China Minsheng Banking Corp.
The marketing joint venture - known as Sinopec SenMei (Fujian) Petroleum Co. - will manage and operate around 750 filling stations and a network of terminals in Fujian. Sinopec will hold 55% of this venture, with Exxon and Aramco owning 22.5% each.