Legal DealFolio - Borrowing Base Facility for Panzhuang Coalbed Methane Block, China

Herbert Smith Freehills has advised The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank as joint lead arrangers on a USD100 million secured borrowing base facility to fund the development and operation of the Panzhuang coalbed methane (CBM) block in China. AAG Energy Limited (AAG), a China-focused coal bed methane company, secured the five-year syndicated reserve-based loan for the development of its Panzhuang concessions in China. The Panzhuang concession is the first CBM concession to receive Overall Development Plan approval from the National Development and Reform Commission. AAG also operates the Mabi Block which, together with Panzhuang, makes for two of the most commercially advanced CBM blocks in China. Both developments are located in the South Qinshui Basin of China's coal-rich Shanxi province. Herbert Smith Freehills conducted due diligence on the assets, advised the arrangers on the structuring of the transaction, and drafted and negotiated all English and Hong Kong law documents. The firm also coordinated legal advice from PRC, Samoan, Cayman and British Virgin Islands counsels. The Herbert Smith Freehills team on the deal was led out of the firm's Singapore office by banking and finance partner Adrian Cheng, who was supported by senior associates Andy Bennett and Preeti Kamat, and trainee Joseph Stolerman. Beijing-based partner Monica Sun led the due diligence exercise with support from associates Jie Li and Hao Su. Hong Kong-based partner Alexander Aitken advised on Hong Kong law aspects of the security with support from associate Feng Xiao.

Deal Date:	21-01-2014	Practice Area:	Project Finance and Infrastructure
Deal Title:	Borrowing Base Facility for Panzhuang Coalbed Methane Block, China	Industry:	Mining
Description:	Herbert Smith Freehills has advised The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank as joint lead arrangers on a USD100 million secured borrowing base facility to fund the development and operation of the Panzhuang coalbed methane (CBM) block in China. AAG Energy Limited (AAG), a China-focused coal bed methane company, secured the five-year syndicated reserve-based loan for the development of its Panzhuang concessions in China. The Panzhuang concession is the first CBM concession to receive Overall Development Plan approval from the National Development and Reform Commission. AAG also operates the Mabi Block which, together with Panzhuang, makes for two of the most commercially advanced CBM blocks in China. Both developments are located in the South Qinshui Basin of China's coal-rich Shanxi province. Herbert Smith Freehills conducted due diligence on the assets, advised the arrangers on the structuring of the transaction, and drafted and negotiated all English and Hong Kong law documents. The firm also coordinated legal advice from PRC, Samoan, Cayman and British Virgin Islands counsels. The Herbert Smith Freehills team on the deal was led out of the firm's Singapore office by banking and finance partner Adrian Cheng, who was supported by senior associates Andy Bennett and Preeti Kamat, and trainee Joseph Stolerman. Beijing-based partner Monica Sun led the due diligence exercise with support from associates Jie Li and Hao Su. Hong Kong-based partner Alexander Aitken advised on Hong Kong law aspects of the security with support from associate Feng Xiao.
Financial Center:	Singapore	Value:	0.00-100.00
Advised Party:	Debt Provider	Law Firm	Herbert Smith Freehills
Project Location	China	Equity Sponsor	China
Classification:	Project Finance Mining and Metals	Lawyer	Adrian Cheng

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Project Finance and Infrastructure Law Firms and Lawyers

Practice Areas - Project Finance and Infrastructure Law Firms and Lawyers