China loan volume soars; major deals in HK, Taiwan

Zhuhai Hegang Highway, HSH finance and General Interface Solution (GIS) Holding feature in Dealogic's roundup of loans activity in Asia for March 2 to 8.

China syndicated loan volume up 37% Y-o-Y

  • Zhuhai Hegang Highway has secured a RMB 6.0 billion facility through sole mandated lead arranger China Development Bank. Syndication saw Agricultural Bank of China, Bank of Communications, and Industrial & Commercial Bank of China join as participants. Proceeds are to finance the construction of Hegang Highway in Guangdong province, China.
  • This is the second largest Transportation sector deal signed in China in 2018 YTD, after Foshan Rail Transit Line 3 Development’s $3.9 billion facility signed in January 2018.
  • In China, syndicated loan volume stands at $22.0 billion via 41 deals in 2018 YTD, up 37% from $16.1 billion borrowed in the same period of 2017.

Real Estate sector leads the Asia Pacific (ex-Japan) loan volume in 2018 YTD

  • HSH finance has secured a GBP 650 million facility through joint mandated lead arrangers Bank of China, Hang Seng Bank, HSBC, Mizuho Bank, and OCBC on a club basis. Proceeds are to support the project that entails the development of the Peninsula London with a 190-guestroom hotel and 24-28 residential apartments.
  • The deal is the second largest Real Estate sector loan signed in Hong Kong so far this year, behind Unicorn Bay (Hong Kong) Investments’ $1.4 billion fundraising signed in February 2018.
  • Hong Kong syndicated loan volume totals $5.6 billion in 2018 YTD, accounting for 14% of Asia Pacific (ex Japan)’s total loan volume.

The second largest deal signed in Taiwan in 2018 YTD

  • General Interface Solution (GIS) Holding has signed a $300 million facility through sole bookrunner and mandated lead arranger Mega International Commercial Bank. Syndication saw Bank of Taiwan, CTBC Bank, Chang Hwa Commercial Bank, DBS, First Commercial Bank, KGI Bank, and Taiwan Cooperative Bank joined as mandated lead arrangers; while Taishin International Bank joined as arranger. Proceeds are to refinance the $300 million facility signed in November 2015 and for working capital purposes.
  • This is the second largest deal signed in Taiwan in 2018 YTD, behind by Casetek Holdings’ $360 million facility signed in January 2018.
  • Taiwan syndicated loan volume stands at $1.7 billion via 13 deals in 2018 YTD, up 71% from $995 million borrowed in 2017 YTD.
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