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Four cash-rich Chinese banks have announced that they have deposited US$1 billion loan facility with South Africa's Standard Bank to Africa firms. It is the banks' first fund-raising in Asian capital markets, reports the africdancapitalmarketsnews.com.
The lenders are Industrial and Commercial Bank of China (Macau) Limited, which has a 20% stake in Standard Bank, Bank of China, China Development Bank and China CITIC Bank. The five-year loan is for “general corporate purposes”, according to the bank, and is repayable in a bullet capital single tranche on maturity.
Jacko Maree, Chief Executive of the Standard Bank Group, said: "This transaction is 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.
"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."
Standard Bank expects a dozen major lending deals in Africa with its China partner next year, as resource-hungry Chinese firms begin returning to the continent, according to Reuters. Chinese companies are said to be looking for opportunities focusing on mining, oil and gas and mineral sectors. The bank expects fast-growing and huge demand for financing for resources and infrastructure.
Source: africanews
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