DBS Chongqing

DBS arranges largest Chongqing loan by foreign bank

Deal comes as China’s lenders are passing on some opportunities under pressure from the government to reform, which is opening up chances for foreign competitors, say bankers.

Chongqing Grain Group, the largest Chinese state-owned grain producer in Southwest China, signed its first syndicated loan on Wednesday, and chose to borrow from a foreign bank.

The three-year of $187.5 million loan facility was arranged by DBS Bank and is the largest syndicated loan arranged by a foreign bank in the city of Chongqing.

For decades, China’s largest state-owned banks have funneled people’s savings at cheap interest rates into state-owned enterprises, a process that spurred industrial overcapacity and suppressed consumer consumption.

Since taking office in March, China’s new leaders have said repeatedly they will unleash market forces to rein in excessive lending and...

¬ Haymarket Media Limited. All rights reserved.

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222