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Bunker supplier Brightoil Petroleum (Holdings) Ltd. has announced that that the Hong Kong Branch of China Development Bank Corporation (CDB) has agreed to grant a term loan facility of up to RMB1 billion (approximately HK$1.22 billion, or US$156.5 million).

In a statement, Brightoil said the facility is secured by a personal guarantee executed by Dr. Sit Kwong Lam, the controlling shareholder of the company, in favour of CDB.

Brightoil said the loan will be used as working capital for its marine bunkering business and front-end costs of its upstream oil and gas projects.

Dr. Sit currently has 4,527,440,000 shares in Brightoil, which represents approximately 67 per cent of the entire issued share capital of the company.

Commenting on the loan agreement, Brightoil said: "Pursuant to the Loan Agreement, Dr. Sit shall remain as a controlling shareholder of the company. It will constitute an event of default if the Specific Performance Obligation is breached whereupon CDB may, by not less than 30 days notice to the company, cancel the facility and declare all outstanding loans together with accrued interest, and all other amounts accrued under the loan agreement and the guarantee immediately due and payable."

"The company will comply with continuing disclosure obligations under Rule 13.21 of the Listing Rules so long as the Specific Performance Obligation continues to exist," Brightoil added.