THE Bank of Tokyo is syndicating two low-priced loans for the Bank of China to help finance power stations owned by New York-listed Huaneng International Power Development Co, according to a debt markets newsletter. One was a US$90 million loan for projects in Dalian and Dandong in northern China and the other was a US$44.4 million loan for a power station in Sichuan, Basis Point said. The pricing on both included a margin of 30 basis points if offered as a tax-spared loan or 40 bp if offered as a conventional loan, the newsletter said. It said the Bank of Tokyo intended to offer the deals as tax-spared but that had not been finalised because China's tax authorities had yet to grant their approval. If the pricing scheme was rejected the deals would revert to conventional loans at the higher margin. Basis Point said the deals had provoked complaints from competing Japanese banks which worried that the Bank of Tokyo was undercuttingthe market by eliminating front-end fees. If the loan is structured in a conventional manner the all-in return on a fully-drawn basis is 40 bp for an average life of 6.25 years. In May, the Bank of China raised a five-year loan which paid 60 bp on the conventional tranche and 45 bp on the tax-spared one. There was a commitment fee of 30 bp, a front-end fee of 65 bp and availability was for 17 months. Among the major Japanese banks, the Bank of Tokyo last month became the first to open a branch in Beijing. It now had a head start in building up a clientele that was unlikely to switch to others because opening an account at a foreign bank was a time-consuming process, Basis Point said.