SM-led China Banking Corp. has returned to the offshore debt market for the first time since the Asian currency turmoil with a recent deal to raise $158 million from a three-year syndicated loan facility.
The facility carries an interest margin of 1.4 percent per annum over three-months Libor (London Interbank Offered Rate), the bank in a press statement. This marks China Bank’s successful return to the international markets since its $125-million issuance of floating rate certificates of deposit in 1996 and 1997.
Proceeds from this new issuance will be used for general corporate purposes and to support the growth of China Bank’s dollar assets, the bank said.
“We are pleased with the positive response of the international lenders to this transaction. It reflects the international FI’s confidence in China Bank’s solid fundamentals — strong capital levels, well diversified loan portfolio and quality assets, and strong balance sheet with sustainable growth,” China Bank president Ricardo Chua said in a press statement.
The syndication attracted strong interest from financial institutions based in Asia and the Middle East, some of which are supporting China Bank for the first time, the bank said.
Australia and New Zealand Banking Group Ltd. acted as the lead arranger and bookrunner. KDB Group and Mizuho Bank Ltd (Singapore branch) and Doha Bank were the mandated lead arrangers. Other arrangers were Mega International Commercial Bank Co., Ltd., CTBC Bank Co., Ltd. Singapore, The Shanghai Commercial & Savings Bank, Ltd., Taiwan Cooperative Bank, and Taishin International Bank Co, Ltd.
Founded in 1920, China Bank is the country’s first privately owned local commercial bank and now the fifth largest domestic private universal bank in the country with over P477 billion in assets. It serves the banking needs of the corporate, commercial, and retail markets.
With the acquisition of Planters Development Bank (Plantersbank) in 2014, and its eventual merger with China Bank Savings (CBS), China Bank is building a stronger platform for small and medium enterprise finance. The China Bank group now has 483 branches to date.//30