China Banking Corporation (China Bank) has secured a US$158 million three-year term loan facility from regional and international banks.
The facility marks China Bank’s triumphant return to the international markets since its successful US$125 million floating rate certificates of deposit (FRCD) issue in 1996 and 1997. Proceeds will be used for general corporate purposes and to support the growth of China Bank’s dollar assets. The facility carries an interest margin of 1.40% per annum over 3 months Libor.
“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,” said China Bank President & CEO Ricardo R. Chua during the signing of the facility agreement.
The syndication was launched on May 18, 2015 in Taiwan, attracting strong interest from financial institutions based in Asia and the Middle East, some of which are supporting China Bank for the first time.
Australia and New Zealand Banking Group Limited was the Mandated Lead Arranger and Book Runner. KDB Group (The Korea Development Bank – Seoul Head Office, KDB Asia Limited – Hong Kong) and Mizuho Bank, Ltd – Singapore Branch were the Mandated Lead Arrangers. Doha Bank Q.S.C. was the Lead Arranger. The 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 SME finance. The China Bank Group now has 483 branches to date (319 China Bank, 86 CBS, and 78 Plantersbank). This wide branch network is complemented by electronic banking channels—ATM, online, mobile, and phone banking—that provide secure and reliable 24/7 banking service.