Hang Seng lead-arranges US$50mln loan facility

The US$50 million equivalent multi-currency transferable term loan facility included the first-ever renminbi syndicated loan facility in Hong Kong.

As it was oversubscribed, the 3.5-year Facility for China Automation Group was upsized from its original target of US$40 million equivalent. It is comprised of a 50 million renminbi facility, a 40 million US dollar facility and a 22 million HK dollar facility.

The loan syndicate comprises Hang Seng Bank Limited; Australia and New Zealand Banking Group Limited; Hua Nan Commercial Bank, Ltd., Hong Kong Branch; Allied Banking Corporation (HK) Ltd; PT. Bank Negara Indonesia (Persero) Tbk, Hong Kong Branch; The Bank of East Asia, Limited; Far Eastern International Bank Co., Ltd., Hong Kong Branch; Industrial Bank of Taiwan, Hong Kong Branch; Taiwan Business Bank Hong Kong Branch; and The Shanghai Commercial and Savings Bank, Ltd. Hong Kong Branch.

The syndicated loan will be used to finance the investment, capital expenditure and general corporate requirements of China Automation Group. The company's Chairman, Mr Richard Xuan, said, “This ground-breaking syndicated financing that includes an RMB facility signifies the beginning of Hong Kong’s RMB offshore financing. We believe that RMB offshore financing will be a valuable option for companies in Hong Kong with significant business exposure in China. This landmark transaction lays a solid foundation for the development of renminbi offshore financing in Hong Kong.”

Mr Donald Lam, Assistant General Manager and Head of Commercial Banking at Hang Seng Bank, said, “Hang Seng is honoured to have been appointed as the Mandated Coordinating Arranger and Facility Agent for China Automation Group’s debut syndicated loan fundraising deal. The Facility also represented the breakthrough of offshore renminbi syndicated financing in the region and will further promote the development of the renminbi offshore market in Hong Kong.”