Business

Duke Energy lands $6B credit line; Chinese banks provide 11%

The new credit agreement with banks from around the world provides the Charlotte-based utility with additional cash beyond existing credit agreements. Of the $6 billion, $2 billion is contingent upon the closing of its merger with Progress Energy.

Posted 2011-11-28T13:30:17+00:00 - Updated 2011-11-28T13:30:17+00:00

Duke Energy (NYSE: DUK) has additional liquidity coming its way as the Charlotte-based utility moves toward closure of its merger with Raleigh-based Progress Energy (NYSE: PGN).

Duke said Monday it had closed on a $6 billion credit line with 30 banks and financial institutions from around the world.

Chinese banks are contributing some 11 percent or more than $600 million. That’s a record participation in financing by the Chinese in an American utility, according to Duke.

Of the $6 billion, $2 billion is contingent upon Duke closing the Progress merger.

Duke already had a $3.14 billion credit facility set to expire next June. Progress Energy has credit facilities totaling some $2 billion that were set to close in 2012 and 2013, Duke said in the announcement.

Of the $6 billion, 49 percent came from North American banks, 34 percent from European banks and 17 percent from Asian banks, Duke said.