CHINA Banking Corp., the listed affiliate bank of the SM Group, said it has raised a $158 million from a syndicated, three-year loan from various regional and international banks.
The agreement covering the loan facility was signed on June 20, and the bank executed draw down on June 30. It was launched on May 18 in Taiwan, attracting strong interest from financial institutions in Asia and the Middle East, some of which are supporting China Bank for the first time.
The loan proceeds will be used for general corporate purposes and to support the growth of dollar assets, China Bank said in a statement.
The loan carries a yearly interest margin of 1.40 percent over the three-month LIBOR.
This development marks the return of China Bank to the international market since it issued the $125-million floating rate certificates of deposit in 1996 and 1997.
“It reflects the international financial institutions’ confidence in China Bank’s solid fundamentals – strong capital levels, well diversified loan portfolio and quality assets, and strong balance sheet with sustainable growth,” said China Bank President & CEO Ricardo R. Chua.
The Australia and New Zealand Banking Group Limited was the lead arranger and book runner for the transaction, and the lead arrangers were the KDB Group, which includes The Korea Development Bank Seoul Head Office and the KDB Asia Limited in Hong Kong, and Mizuho Bank Ltd. Singapore Branch.
The Doha Bank Q.S.C., on the other hand, was also hired as lead arranger, with 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.