THE developers of Shanghai Disneyland yesterday secured a 12.9 billion yuan (US$2 billion) syndicated loan with a number of Chinese banks for the project's first phase of construction.
The deal came just one year after construction began on the theme park, which is slated to be open in the Pudong New Area in 2015.
Shanghai Shendi Group, which represents the city government's stake in the project, and Walt Disney Co have said the initial investment will be about 24.5 billion yuan to build the theme park and an additional 4.5 billion yuan to build the other aspects of the resort, including hotels and retail, dining and entertainment areas.
The loan deal signed yesterday was under a framework agreed in May between Shendi and a consortium of 12 banks led by China Development Bank, Shanghai Pudong Development Bank and the Bank of Communications.
The Disneyland theme park will lie in the heart of a 20-square-kilometer Shanghai International Tourism Zone.
Shao Xiaoyun, vice president of Shendi, said another syndicated loan may be granted under the framework for the development of the broader tourism zone.
A syndicated loan is provided by a group of lenders and is structured and arranged by one or several banks known as arrangers. This kind of loan has been increasingly used in domestic infrastructure projects.
The Shanghai Bureau of the China Banking Regulatory Commission has said major projects, other than real estate projects, with a fundraising scale of more than 2 billion yuan should seek syndicated loans.
The mega loan for the Disneyland theme park was part of Shanghai's bid to boost the progress of key infrastructure projects this year.