China Loan House: Standard Chartered Bank
Bucking the trend
Standard Chartered stood out amid a weak macroeconomic backdrop and geopolitical tensions that combined to dent lending activity in Greater China. Despite the rise of bilateral and clubbed deals, the bank won more than a dozen sole mandates and introduced several new borrowers to the market.
Of the 15 deals the bank led on sole basis during the review period, one-third were sold down to more than 10 lenders, demonstrating its strong distribution capabilities.
Among the more notable deals were a €250m (US$282m) loan for Chinese automotive components maker Anhui Zhongding Sealing Parts and a US$300m-equivalent financing for electric vehicle battery maker Tianneng Power International. The former deal closed with 22 banks joining, while the latter drew 17 other lenders.
“With the economic outlook for China remaining uncertain, we focused our efforts on identifying borrowers that were somewhat shielded from the immediate impact of US tariffs and looked to support clients on their international growth journey, helping them to expand into new markets and regions to counter a slowdown in consumption activity at home or diversify supply chains,” said Amit Lakhwani, global head of loan syndicate.
Another borrowing that StanChart led solo was Shandong Hi-Speed New Energy’s Rmb1.88bn (US$266m) three-year green loan with CNH Hibor as well as the loan prime rate as interest rate benchmarks and also a fixed-rate component. A dozen lenders joined in syndication.
StanChart boosted its ESG credentials with sole-led deals for borrowers from rarely seen sectors. For instance, waste treatment and disposal services provider SUS Environment increased its debut three-year sustainability-linked loan to US$175m after attracting seven banks in general syndication. The borrowing was China’s first syndicated SLL from the waste-to-energy industry. StanChart closed a US$150m-equivalent three-year SLL for Hong Kong-listed assisted reproductive services provider Jinxin Fertility Group with 11 banks joining.
It made a mark in loans for high-profile borrowers and was among the joint leads on borrowings for Hong Kong railway operator MTR Corp’s HK$30bn (US$3.86bn) debut green loan that closed to a blowout response in September. Forty banks joined the seven-year borrowing, which was among the largest green financings in Asia Pacific.
Airport Authority Hong Kong’s HK$19.7bn-equivalent five-year financing, car maker Zhejiang Geely Holding Group’s €2.4bn three-year loan, insurance company FWD Group’s US$1.5bn financing, and conglomerate Fosun International’s US$910m-equivalent SLL were among its other deals.
StanChart also brought well-received deals for borrowers from outside Asia Pacific, including a US$5bn three and five-year loan for sovereign wealth fund Abu Dhabi Developmental Holding (ADQ).
To see the digital version of this report, please click here
To purchase printed copies or a PDF, please email shahid.hamid@lseg.com