Hyflux, a Singapore-based company that designs water treatment systems, has approached banks for an $800 million bridge loan to fund the construction of a second desalination plant in the city- state, according to a person familiar with the matter.

The so-called club loan is unlikely to be marketed to other lenders and banks include Australia & New Zealand Banking Group, BNP Paribas SA, Bank of Tokyo-Mitsubishi UFJ, DBS Group Holdings, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp., the person said, asking not to be identified as details are private.

 

Hyflux has about $300 million of loans maturing before the end of 2024, according to data compiled by Bloomberg. Proceeds from a US$200 million ($246 million) facility that was signed in January and matures in January 2016 were used to refinance debt, the data show. The company, which reported a 15 percent increase in first-quarter net income of $7.4 million, operates desalination plants in China, the Middle East and Singapore, according to its website.

 

Funds from the $800 million facility will also be used to fund a 400-megawatt gas-fired power plant in Singapore, the person said. A bridge loan is generally a short-term loan that matures in one year. It’s usually issued while a longer-term loan is being negotiated.

 

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