Tian Lun Gas

completed

Tian Lun Gas (the “Company”) is one of the major gas distribution companies in China. Its business includes gas connection services, gas transportation and distribution, operation of gas refueling stations and LNG production. In the past few years, Tian Lun Gas has extended its area of operations from central China to northeast, northwest, southwest and southern China. Currently, Tian Lun Gas is the operator of 43 city gas concessions (~95% exposure in frontier regions), reaching over 593,000 households and 3,000 commercial/industrial customers. The Company also operates 28 CNG/LNG gas refueling stations and 7 CNG parent stations, and has three LNG plants either under construction or under development, with total annual production of 600 million m3. The proposed investment (the “Project”) consists of: (i) an A Loan of up to US$40 million ; (ii) an MCPP loan of up to US$20 million (iii) an equity investment up to $75 million; and (iii) a potential equity investment of up to $75 million from the IFC Asset Management Company. The proceeds of the proposed financing will be used to help finance the Company’s 2015-2018 capital expenditure programs which include (i) the construction of LNG plants and gas filling stations, (ii) the expansion of city gas pipeline networks, and (iii) the acquisition of additional municipal gas projects mostly in frontier regions. Tian Lun Gas currently has over 50 wholly or majority owned subsidiaries in China. Tian Lun gets its natural gas from high-pressure national gas pipelines and transfers it to its city gate stations through branch pipelines. The gate stations are for temporary storage of natural gas and pressure reduction before transfer to city pipeline networks. The gas from filling stations is either from local pipeline or CNG tankers.