China Auto & Truck sector loan up 54% Y-o-Y
- Geely Sweden Industry Investment has signed an €3.1 billion facility through joint bookrunners and mandated lead arrangers ANZ, BNP Paribas, Bank of China, China CITIC Bank International, China Everbright Bank, Export-Import Bank of China, ING Belgium, Industrial & Commercial Bank of China, Nordea Bank, Ping An Bank, Skandinaviska Enskilda Banken, and Societe Generale. Syndication saw China Merchants Bank, China Minsheng Banking Corp, MUFG Bank, and Shanghai Pudong Development Bank came in as mandated lead arrangers. Proceeds are to support the $3.2 billion acquisition of Volvo by Zhejiang Geely Holding Group.
- In China, Auto & Truck sector loan volume reached $4.0 billion via 8 deals in 2018 YTD, up 54% from the $2.6 billion borrowed in 2017 YTD.
- In Asia Pacific (ex Japan), Auto & Truck sector loan volume reached $6.1 billion via 15 deals in 2018 YTD, almost doubled the $3.2 billion borrowed in 2017 YTD.
Project Financing leads China syndicated loan in 2018 YTD
- Powerchina Anhui Changjiu Advanced Materials has signed a RMB$7.5 billion facility through joint mandated lead arrangers Agricultural Bank of China, Bank of China, China Construction Bank, China Minsheng Banking Corp, Chizhou Jiuhua Rural Commercial Bank, Huishang Bank, and Industrial & Commercial Bank of China on a club basis. Proceeds are to finance the development and operation of Shenshan limestone mine project in Chizhou, Anhui Province, China.
- Project Financing leads China syndicated loan market with $18.7 billion signed so far this year, increasing 31% year-on-year and accounting for 29% of total loan volume in the region.
- In 2018 YTD, China syndicated loan volume stands at $64.3 billion, marking the third-highest YTD level on record.
Hong Kong loan down 23% Y-o-Y
- HKBN Group and Hong Kong Broadband Network have signed a HK$4.1 billion facility through sole bookrunner and mandated lead arranger BNP Paribas. Syndication saw Bank of East Asia, Bank of Taiwan, Cathay United Bank, Chong Hing Bank, Citibank, Credit Agricole, Credit Industriel et Commercial, E.Sun Commercial Bank, Hang Seng Bank, Hua Nan Commercial Bank, Industrial & Commercial Bank of China, MUFG Bank, Taipei Fubon Commercial Bank, and Taishin International Bank join as mandated lead arrangers; while Bank Negara Indonesia, Mega International Commercial Bank, and Taiwan Cooperative Bank join as arrangers. It is an amendment to an existing HK$4.1bn facility signed in November 2016 to reduce margin and extend tenor. Proceeds are to refinance existing facilities.
- This is the second largest Telecommunication deal signed in Asia Pacific (ex Japan) so far this year. In Hong Kong, this is the first Telecommunication deal signed so far this year.
- Hong Kong syndicated loan volume stands at $17.5 billion in 2018 YTD, down 23% from the $22.7 billion borrowed in 2017 YTD.
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