OCBC Hong Kong arranges US$388M loan for China Merchants Financial Leasing (Hong Kong)

OCBC Hong Kong has announced the completion of a three-year US$388 million (HK$3.03 billion) syndicated loan and revolving credit facility for China Merchants Financial Leasing (Hong Kong), a bid to catch future financing opportunities with Chinese state-owned enterprises.

The facility comprises a US$288 million three-year term loan and a US$100 million three-year revolving credit line. According to the bank's news release, the proceeds will support general working capital needs, including the repayment of existing debt of the subsidiary of China Merchants Group.

The syndication attracted participation from five prominent banks across Singapore, mainland China, and Hong Kong. OCBC Hong Kong acted as the exclusive coordinator, sole loan agent, sole sustainability coordinator, mandated lead arranger, and bookrunner.

This transaction further deepens the relationship, following OCBC Hong Kong's participation in China Merchants Financial Leasing (Hong Kong)'s syndicated loans in 2021 and 2022. The expanded collaboration includes areas such as account services and the execution of an ISDA agreement.

OCBC Hong Kong anticipates that this deal will significantly benefit its future business in financing state-owned enterprises.