Standard strengthens China ties

Johannesburg - South African banking group Standard Bank announced late Thursday that it has further 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 co-ordinated 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 People's Republic of China.

This is a debut term loan for Standard Bank's fund raising in the Asian market, the bank said in a statement.

Jacko Maree, Standard Bank Group chief executive 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."

He said that Standard Bank'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.

"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," said Maree.

The money will be used for general corporate purposes by The Standard Bank of South Africa Limited (SBSA).

- I-Net Bridge