The deal to serve as a platform for future cooperation between them across a range of different banking products and geographies to support Chinese companies going global into emerging markets
Standard Bank, a South Africa-based financial institution, has signed a $1 billion loan facility with four Chinese banks. The banks are Industrial and Commercial Bank of China (Macau), Bank of China, China Development Bank and China CITIC Bank.
Reportedly, the club deal, was self arranged by Standard Bank and co-ordinated by the Industrial and Commercial Bank of China (ICBC) and ICBC (Macau), a subsidiary of ICBC. It has said that this is a debut term loan for Standard Bank’s fund raising in the Asian market. Moreover, the money will be used for its general corporate purposes.
Jacko Maree, chief executive, 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. In addition, it shows the increased level of cooperation between Standard Bank and a number of leading Chinese banks, including ICBC.”