THE Bank of China has mandated 11 Japanese banks to arrange a US$300 million syndicated loan to ''finance parts of the important projects of China''.
The US dollar syndicated loan will carry an interest rate of 50 basis points above the London interbank offered rate, with repayment made in one lump sum on the final maturity date, scheduled for five years from drawdown.
The facility is made in two tranches. Tranche A is a conventional US dollar loan and tranche B is a tax spared US dollar loan.
Meanwhile, the the Asian Development Bank (ADB) has approved a $54 million dollar complementary loan to China for the construction of a major bridge in Shanghai.
The loan, consisting of a $44 million dollar tranche in dollars and a 10 million dollar tranch in yen, will be wholly funded by other financial institutions with the ADB guaranteeing the later maturities of the principal amounts of each tranche.
Hongkong Bank China Services Ltd. will be the agent.
