Sinopec borrows on back of Iran deal

On the heels of a just-signed MOU to buy 250m tones of liquefied natural gas from Iran, Sinopec Group was reported seeking a US$200m syndicated loan through arrangers HSBC and Standard Chartered Bank. The 30-year supply deal with National Iranian Oil is coupled with plans for Sinopec to develop Iran's Yadavaran oilfield. Meanwhile, share trading in Sinopec's Hong Kong-listed arm was suspended amid reports it was set to acquire most of its parent group's chemical assets for US$600m, a deal that would include a 60% stake in Tianjin United Chemical and Zhongyuan Petrochemical and stakes in other subsidiaries, adding to a train of related company acquisitions begun in December 2003.