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LONDON, Oct 17 (Reuters) - British gas company BG Group is seeking a $3 billion syndicated loan to refinance existing debt as it continues to diversify its sources of funding to support upstream projects, banking sources said.
The loan is being coordinated by Bank of America Merrill Lynch and HSBC Bank. Bank of America is facility agent on the financing, the sources said.
BG Group declined to comment.
As at Dec. 31, 2011 BG Group had $4.5 billion of undrawn bilateral lines with a number of its relationship banks. $2.31 billion of those loans mature in 2013 and $2.18 billion mature in 2016.
BG Group is diversifying its sources of financing to back its investment programme including the development of two large projects: the Queensland Curtis liquefied natural gas plant in Australia and an offshore joint-venture with Petrobras in Brazil. Over the last 18 months the company has raised $7.7 billion from the capital markets, including $2.1 billion in hybrid bonds.