Standard Bank of Africa has been lent US$1bn by four Chinese banks making their debut loan into the South African market. Having advising Standard Bank for many of its fund-raising activities, UK firm Denton Wilde Sapte (DWS) was recommended to the lenders by the borrower’s international finance team.
This transaction is believed to be the largest of its kind for a South African bank in the Chinese market. ICBC, which was represented by Linklater’s Beijing partner Paul Chow when it acquired a 20% stake in the bank last year, played a huge role in putting together the five-year facility.
The Chinese banks – Industrial and Commercial Bank of China (Macau) (ICBC), Bank of China, China Development Bank and China CITIC Bank – were advised by banking & finance partner and head of the DWS syndicated loans team, Isaac Felberbaum. Standard Bank was represented by its own in-house legal team.
Despite being familiar with advising on deals for Chinese clients, this is the first time DWS has worked on a transaction led by Chinese banks. “Our clients are fully aware and are very familiar with market standards for transactions of this nature,” said Felberbaum. “Although the loan agreement followed previous similar loan agreements, there were quite a few new structural legal and commercial differences.”
“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," says chief executive of Standard Bank Group, Jacko Maree.
The surge of Chinese bank loans has seen many notable investments made into international projects, one of which is China Development Bank’s €339.4m loan to COSCO Pacific and Piraeus Container Terminal in Greece.
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