Standard Bank, the parent company of Stanbic IBTC.Â Plc, weekend, strengthened its relationship with China with the signing of a US$1 billion loan facility with four major Chinese banks in Macau,
The four banks are Industrial and Commercial Bank of China (Macau) Limited; Bank of China; China Development Bank and 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 self arranged by Standard Bank and coordinated by the Industrial and Commercial Bank of China (ICBC) and ICBC (Macau) Limited, a subsidiary of ICBC which recently started operations in this special administrative region of the Peopleâ€™s Republic of China. This is a debut term loan for Standard Bankâ€™s fund raising in the Asian market.
Says Jacko Maree, Standard Bank Group Chief Executive: â€œThis transaction is a first for a South African borrower dealing in the Asian market.Â 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.â€
He said that Standard Bankâ€™s strategic partnership with ICBC played a huge role in putting together the 5-year facility, repayable in a bullet capital single tranche at maturity.Â |
â€œThis 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,â€ says Maree.
The money will be used for general corporate purposes by the Standard Bank of South Africa Limited (SBSA).