Standard Bank, Africa’s top bank by assets, has signed a $1-billion loan facility with four major Chinese banks in Macau, it said on Friday.
Standard Bank named the four banks as the Industrial and Commercial Bank of China (Macau), the Bank of China, the China Development Bank and the China CITIC Bank.
The club deal, believed to be the largest of its kind for a South African financial institution in the Chinese market, was arranged by Standard Bank and coordinated by the Industrial and Commercial Bank of China (ICBC) and ICBC (Macau).
”This is a debut term loan for Standard Bank’s fundraising in the Asian market,” the bank said in a statement.
Jacko Maree, Standard Bank group chief executive, said the transaction was a first for a South African borrower dealing in the Asian market.
”The deal reflects the trust that Chinese banks have in Standard Bank, Africa and emerging markets, despite the tough global capital markets.
”In addition, it shows the increased level of cooperation between Standard Bank and a number of leading Chinese banks, including ICBC,” Maree said.
Standard Bank’s strategic partnership with ICBC played a huge role in putting together the five-year facility, repayable in a bullet capital single tranche at maturity, he said.
”This deal will serve as a platform for future cooperation between Standard Bank and these banks across a range of different banking products and geographies to support Chinese companies going global into emerging markets,” Maree said.
He said the money would be used for general corporate purposes by Standard Bank. — Sapa