South Africa, China bank loan of US$1 billion

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On Friday 11 September 2009, Standard Bank of South Africa Ltd (SBSA) signed a US$1 billion loan facility with major Chinese banks: Industrial and Commercial Bank of China (Macau) Limited; Bank of China; China Development Bank; and China CITIC Bank in Macau.

The debut term loan is believed to be the largest of its kind for a South African financial institution in the Chinese market and is repayable in a bullet capital single tranche at maturity.

Standard Bank arranged it and coordinated it with 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. Standard Bank's strategic partnership with ICBC played a huge role in putting together the 5-year facility.

“This transaction is a first for a South African borrower dealing in the Asian market,” states Jacko Maree, Standard Bank group chief executive. “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.”

“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,” concludes Maree.