Wilmar International, the world’s largest palm oil trader, approached banks for about $1.1 billion ($1.5 billion)of loans to buy CSR Ltd.’s Australian sugar unit, according to two people familiar with the matter.

 

The mixed-maturity term facility, in both Australian and U.S. dollars, will pay an all-in fee averaging about 100 basis points more than the London interbank offered rate, the people said, asking not to be identified as the talks are private.

 

Wilmar, based in Singapore, agreed to buy CSR’s Sucrogen unit for A$1.75 billion ($2.16 billion) last month, beating a bid from China’s Bright Food Group Co. The acquisition will allow Wilmar to “create synergies and pursue growth strategies in Indonesia and other high potential Asian markets,” Wilmar said in a statement on July 5.

 

The company said on July 5 that the acquisition will be funded from internal resources and by borrowing from banks. Wilmar has about US$1.4 billion of bonds and loans maturing by the end of 2012, according to data compiled by Bloomberg.

 

Wilmar investor relations head Lim Li Chuen declined to comment today. A basis point is 0.01 percentage point.