State-backed real estate developer Loudi City Development Holdings is seeking a combined CNY 1.3bn (USD 180m) of debt finance for two environment projects, a spokesperson told Infralogic.
The first will require about CNY 800m of debt and is estimated to cost more than CNY 1bn, he said. The project will be built at an industrial site and involves setting up solid waste and waste recycling plants, ecosystem restoration and water supply facilities.
The Loudi city-owned developer also plans to build commercial properties, a museum, a park, a carpark, electric vehicle charging points, access roads, telecommunications infrastructure, power supply and distribution systems. The project will cover about 126,000 sqm.
The company expects to generate revenue from commercial property sales and rentals, availability payments and ecotourism, said the spokesperson.
The second project is the Loudi Scenic Village development, which requires about CNY 500m of debt. It will be located in the suburban areas surrounding the city’s Qiaotouhe airport. The 3,000-acre project will feature ecosystem restoration facilities, a sewage treatment plant, access roads, water, gas supply and power distribution networks. There will also be logistics centres including a cold chain facility, the spokesperson said.
The developer would prefer tenors of more than 10 years for both debt facilities and an interest rate of about 4.6%, said the spokesperson, adding that it is open to holding discussions with potential lenders up till the first quarter of the next year.
