China transport sector loans down; project finance up

Powerchina Roadbridge Group, Sichuan Lehan Expressway and China Power Hub Generation feature in Dealogic's roundup of loans activity in Asia for November 17 to 23.

Construction is the third largest sector in China loan market in 2017 YTD

  • Powerchina Roadbridge Group has signed a RMB 20.0 billion facility through joint mandated lead arrangers Bank of China and China Development Bank. Syndication saw Agricultural Bank of China, Industrial & Commercial Bank of China, and Postal Savings Bank of China come in as participants. Proceeds are to support the construction of the Zhongshan - Kaiping Highway project on a BOT+EPC basis in China.
  • This is the third largest Construction deal signed in China in 2017 YTD, behind CCCC Investment’s $4.3 billion fundraising signed in June 2017 and Shanghai Metro Line 15 Development’s $3.4 billion facility signed in May 2017.
  • Construction is the third largest sector in China loan market. Volume stands at $19.9 billion via 52 deals in 2017 YTD, accounting for 16% of the total China loan volume.

Asia-Pacific (ex-Japan) Transportation sector loan volume down 28% YoY

  • Sichuan Lehan Expressway has signed a RMB 10.3 billion facility through a sole mandated lead arranger Postal Savings Bank of China. Syndication saw Agricultural Bank of China, Bank of China, China Construction Bank, and Industrial & Commercial Bank of China come in as participants. Proceeds are to finance the construction of Emei-Hanyuan highway in Sichuan Province, China.
  • Transportation sector leads China loan volume with $25.5 billion signed in 2017 YTD, down 4% from $26.6 billion borrowed in the same period of 2016.  
  • In Asia-Pacific (ex-Japan), Transportation sector loan volume stands at $40.6 billion in 2017 YTD, down 27% from $55.4 billion borrowed in the same period of 2016.

Asia Pacific (ex-Japan) Project Finance loan volume at highest YTD level since 2012

  • China Power Hub Generation has secured a $1.5 billion facility through a sole mandated lead arranger China Development Bank. Syndication saw Bank of Communications, China Construction Bank, Export-Import Bank of China, and Industrial & Commercial Bank of China come in as participants. Proceeds are to finance the construction of CPHGC 2 × 660MW Coal-fired Power Plant in Hub tehsil, Lasbela district, Balochistan province, Pakistan.
  • Project Finance loan volume stands at $93.3 billion in Asia Pacific (ex Japan) so far this year, increasing 25% from $74.7 billion borrowed in the same period of 2016 and marking the highest YTD level since 2012 ($97.3 billion).
  • Asia Pacific (ex-Japan) syndicated loan volume stands at $383.9 billion in 2017 YTD, down 15% from the $449.8 billion borrowed in 2016 YTD and marking the lowest YTD level since 2012 ($340.2 million).
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