bnp paribas (BNP) Snapshot

Karnalyte Resources Inc. announced that it has entered into an engagement letter pursuant to which it has engaged BNP Paribas and Natixis, New York Branch, on an exclusive basis, to act as lead arrangers for a senior secured project finance facility of up to $300 million. The purpose of the Facility is to fund the construction and commissioning of the Wynyard Carnallite Project. The facility will be structured on an underwritten basis whereby each Lead Arranger will underwrite 50% of the Facility subject to credit approval, due diligence and satisfactory legal documentation, and will syndicate it to banks, financial institutions and other institutional lenders. The Engagement Letter contemplates the entering into of a definitive term sheet and commitment letters for the Facility upon the satisfaction of certain conditions. The net proceeds from the Facility together with funds provided through Gujarat State Fertilizers and Chemicals Ltd., the Corporation's strategic investor, will provide the company with approximately 60% of the total capital required to construct the Project. The company is pursuing a financing strategy for the Project based on a combination of the Facility and equity. Bank of Montreal is acting as its Karnalyte's financial advisor in connection with the Facility.

BNP Paribas SA is planning to merge its U.S. retail banking unit, BancWest Corp., with the company's U.S. corporate and investment banking operations. The planned merger reportedly comes on the back of a proposal by Federal Reserve Gov. Daniel Tarullo requiring foreign banks to establish intermediary holding companies in an effort to ringfence their U.S. risks.

BNP Paribas SA (BUSE:BNPPARIBAS) is in talks to acquire a part of the corporate client business of IKB Deutsche Industriebank AG from Lone Star Funds, daily Handelsblatt reported. BNP Paribas is reportedly interested in about 300-400 corporate contracts especially those involving companies with annual revenue of over €250 million. The value of assets is estimated to be in three-digit million range.