Real estate leads China loan volume up; South Korea's biggest deal YTD

Greentown China Holdings, Shenzhen Investment and Pospower feature in Dealogic's roundup of loans activity in Asia for June 29 to July 5.

Real Estate leads China syndicated loan volume in 2018 YTD

  • Greentown China Holdings has sealed a $800 million facility through sole bookrunner and mandated lead arranger HSBC. Syndication saw Bank of Communications, Bank of East Asia, China Construction Bank, China Merchants Bank, China Minsheng Banking Corp, Dah Sing Bank, Fubon Bank, Industrial & Commercial Bank of China, Industrial Bank, Mega International Commercial Bank, Nanyang Commercial Bank, Ping An Bank, and Shanghai Pudong Development Bank join as mandated lead arrangers, while Bank of Shanghai, China Everbright Bank, Luso International Banking, and Wing Lung Bank joined as arrangers. Proceeds are to repay existing offshore debt and for working capital purposes.
  • Real Estate leads China syndicated loan volume with $18.5 billion borrowed so far this year, increasing 24% from $14.9 billion borrowed in the same period of 2017.
  • Real Estate also leads Asia Pacific (ex Japan) syndicated loan market with $46.6 billion signed in this YTD, accounting for 20% of total loan volume in the region.

China syndicated loan volume down 7% Y-o-Y

  • Shenzhen Investment has closed a HK$10.0 billion facility through joint mandated lead arrangers Bank of China, Bank of Communications, Bank of East Asia, China CITIC Bank International, China Construction Bank, China Everbright Bank, Chiyu Banking Corp, DBS, Hang Seng Bank, Industrial & Commercial Bank of China, Nanyang Commercial Bank, OCBC Wing Hang Bank, Shanghai Pudong Development Bank, Taipei Fubon Commercial Bank, and Wing Lung Bank on a club basis. Proceeds are to repay existing debt.
  • China syndicated loan stands at $80.2 billion in 2018 YTD, down 7% from $85.9 billion borrowed in the same period of 2017.
  • In Asia Pacific (ex Japan), syndicated loan volume stands at $235.1 billion so far this year, down 10% from $260.6 billion borrowed in the same period of 2017.

The largest deal signed in South Korea in 2018 YTD

  • Pospower has signed a KRW 3.3 trillion facility through joint mandated lead arrangers DB Insurance, Hanwha Life Insurance, Industrial Bank of Korea, KEB Hana Bank, Korea Development Bank, Kyobo Life Insurance, NH Nonghyup Bank, Samsung Fire & Marine Insurance, Samsung Life Insurance, Shinhan Bank, and Woori Bank. Syndication saw ABL Life Insurance, Bank of China, DGB Insurance, Hanwha General Insurance, Heungkuk Life Insurance, Hyundai Marine & Fire Insurance, IBK Insurance, KB Insurance, KDB Life Insurance, Korean Federation of Community Credit Cooperatives, Lotte Non-Life Insurance, Meritz Fire & Marine Insurance, Mirae Asset Life Insurance, National Credit Union Federation of Korea, Nonghyup Property & Casualty Insurance, Shinhan Life Insurance, and Tong Yang Life Insurance join as arrangers. Proceeds are to support the construction and operation of a 2100MW Coal Thermal Power Plant, located in Samcheok, South Korea.
  • This is the largest deal signed in South Korea so far this year, followed by Halla Cement’s $450 million facility signed in January 2018 and LSA Holdings and LS Automotive Technologies’ $445 million facility signed in February 2018.
  • In 2018 YTD, South Korea syndicated loan volume stands at $7.0 billion via 24 deals, down 31% from $10.2 billion borrowed in 2017 YTD.
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