AgroPages-ChemChina pursues USD 35 billion loan for Syngenta purchase-Agricultural news

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ChemChina adds investor in its proposal to acquire Syngenta

The global agrochemicals market is projected to reach a value of USD 250.5 billion by 2020, according to a report available from Research and Markets. The report notes a number of factors driving this growth including the rising standards in agricultural farming and extensive use of technology in agrochemicals development. This was supported with news of China National Chemical Corporation's potential loan of USD 35 billion, which will be used to fund the purchase of Syngenta AG.

The Beijing-based China National Chemical Corp hired China Citic Bank International Ltd to arrange a USD 15 billion loan facility fully guaranteed by ChemChina. A separate USD 20 billion syndicated loan is expected to be acquired by ChemChina from lenders. ChemChina agreed to purchase Syngenta earlier this month for USD 43 billion, a move which will transform ChemChina into the biggest supplier of pesticides and agrochemicals in the world.

The global pesticide market is expected to be worth USD 81.13 billion by 2019, as forecast in an industry report. The report states that market growth will be higher in Asia than other countries, and it should be even higher if ChemChina's purchase is successful.

The agrochemicals market in China is set to grow at a CAGR of 7.2% during the 2015-2020 period, as stated in a recent report. As with the pesticide market, it's expected that China's agrochemicals market will register an even higher growth than the aforementioned forecast should China National Chemical Corp complete their purchase of Syngenta.