ChemChina setting up $5 billion fund to help finance Syngenta bid
The financing structure entails investors committing to the fund, which would in turn own equity in Syngenta, the people said - a move that would help the state-owned firm lower the debt burden of its planned $43 billion acquisition.
Overall, ChemChina is targeting about $25 billion in equity commitments to help fund the largest ever foreign purchase by a Chinese firm, the people added.
Sources have previously said it has arranged $32.9 billion in bridge loans with more than 20 lenders, including Chinese, European and other Asian institutions. That level of gearing is, however, viewed as too high for comfort by lenders, investors and analysts alike.
The success of the deal, which still must clear regulatory hurdles, is key for China which is eager to improve domestic food production.
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