Duke gets Chinese funding ahead of Progress acquisition

Duke Energy and Progress Energy have jointly arranged $6 billion in financing in preparation for their anticipated merger. Ten banks will each provide $305.5 million in credit. Seven additional banks will provide $65 million in credit. Bank of China, China Merchants Bank and Industrial & Commercial Bank of China are among the banks providing credit and together they account for 11 percent of the overall lending.

The agreement came as a result of Duke's relationships with Chinese energy providers ENN Holdings and China Huaneng Group. Duke signed agreements with two companies in 2009 to develop solar projects in the U.S. and China. However, Duke and ENN haven't yet collaborated on any projects, citing ENN's inability to receive U.S. solar energy tax breaks.

Under total lending agreements, Duke will receive $4 million and Progress will receive $2 million, with the understanding that the amounts will be combined following the merger. The lines of credit replace currently or about-to-expire lines for both Duke and Progress. The merger is expected to close by the end of the year and is subject to federal and state regulator approval.

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