Transportation is the second largest sector in China in 2017 YTD
- Jinhua Rail Transit Investment & Construction has signed a RMB 20.8 billion facility through joint mandated lead arrangers Agricultural Bank of China, Bank of China, and China Construction Bank. Syndication saw China Everbright Bank, China Guangfa Bank, China Minsheng Banking Corp, Industrial & Commercial Bank of China, and Postal Savings Bank of China come in as participants. Proceeds are to support the construction of a rail transit network connecting Jinhua, Yiwu and Dongyang in Zhejiang Province, China.
- This is the second largest Transportation deal signed in China in 2017 YTD, behind Shenzhen Metro Group’s $3.2 billion fundraising signed in March 2017.
- Transportation is the second largest sector in China. Volume stands at $15.6 billion via 17 deals in 2017 YTD, accounting for 18% of the total China loan volume.
Acquisition-related* loan volume down 55% YoY in Asia Pacific (ex Japan)
- Muse Holdings-B has secured a HK$28.0 billion facility through joint bookrunners and mandated lead arrangers ANZ, Bank of America Merrill Lynch, Bank of China, Bank of Tokyo-Mitsubishi UFJ, China CITIC Bank International, China Merchants Bank, China Minsheng Banking Corp, DBS, Industrial & Commercial Bank of China, and Shanghai Pudong Development Bank. Proceeds are to support the LBO of Belle International Holdings.
- In China, acquisition-related* loan volume stands at $10.5 billion so far this year, down 55% from $23.5 billion borrowed in 2016 YTD.
- Similarly, acquisition-related* loan volume down 55% year-on-year in Asia Pacific (ex Japan) in 2017 YTD.
*Includes deals where use of proceeds is one of acquisitions, future acquisitions, spinoffs, and LBOs
Hong Kong syndicated loan volume at lowest YTD level since 2013
- Xiaomi HK has signed a $1.0 billion facility through joint bookrunners and mandated lead arrangers Bank of China, Deutsche Bank, and Wing Lung Bank. Syndication saw Bank of East Asia, China Construction Bank, China Merchants Bank, and National Bank of Abu Dhabi join as mandated lead arrangers, while BNP Paribas, Bank of China, CTBC Bank, China Minsheng Banking Corp, Chiyu Bank, Industrial Bank, Mega International Commercial Bank, Shanghai Pudong Development Bank, Siemens Bank, and State Bank of India came in as arrangers. Proceeds are to refinance a $1.0 billion facility signed in October 2014 and for general corporate purposes of the borrower group, including but not limited to acquisitions and equity investment.
- This is the largest Technology sector deal signed in Hong Kong this YTD, followed by Kingboard Laminates’ $772 million facility signed and EDKS (HK) and EDS (HK)’s $45 million facility, both signed in March 2017.
- Hong Kong syndicated loan volume totals $22.3 billion in 2017 YTD, down 26% from $30.0 billion signed in 2016 YTD and marking the lowest YTD level since 2013 ($18.8 billion).
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