Noble Group, the commodities supplier backed by China’s sovereign wealth fund, is increasing the size of its loan facility to US$1.599 billion ($2.19 billion) from US$1.2 billion, according to a person familiar with the matter.

The company said in a June 3 statement it will extend the maturity of the loan program, used for letters of credit and bank guarantees, to July 2012 and July 2013. Lenders receive an all-in payment of 140 basis points more than the London interbank offered rate for the 2012 tranche and 155 basis points over Libor for the 2013 tranche, said the person, who declined to be identified because the details are private. A basis point is 0.01 percentage point.

 

A total of 28 lenders have joined the facility, which is being arranged by China Development Bank Corp., Citigroup Inc., Commerzbank AG, Rabobank Nederland NV, DBS Group Holdings, ING Groep NV, Royal Bank of Scotland Group Plc, Societe Generale and Standard Chartered Plc, the person said.

 

“The facility will be used to support the company, its subsidiaries and related companies in connection with the issue of various types of instruments, including standby letters of credit and bank guarantees,” according to the June 3 statement from Noble.