Ant Group’s consumer credit arm secures 4 billion yuan loan from Mizuho-led consortium
- The deal is the largest consortium loan in China’s consumer credit industry to date
- Ant won regulatory approval to expand the capital base at its consumer credit unit late last year
Chongqing Ant Consumer Finance, the consumer credit unit of Ant Group, has received 4 billion yuan (US$550 million) of credit from a bank consortium arranged by the China banking unit of Japanese financial giant Mizuho Financial Group, Mizuho Bank said in a statement on Thursday.
In the deal, Mizuho Bank and Bank of East Asia led the round of credit. The consortium also includes another 12 banks: Fubon Bank (China); Hana Bank; Kasikornban Bank; Sumitomo Mitsui Banking Corp; Xiamen Bank; KDB Bank; E Sun Bank; CTBC Bank; Woori Bank; Morgan Stanley; Krungthai Bank and Kookmin Bank, according to the Mizuho statement.
The deal is the largest consortium loan in China’s consumer credit industry to date and a ceremony was held earlier this week. Further details of the loan, including the interest rate, were not disclosed.
A consortium loan is a common financing method for consumer finance companies, and the deal underscores recognition of Ant’s consumer finance credentials by the 14 banks, according to a spokesman for the Ant unit.
Ant, one of the world’s largest fintech companies and the operator of the Alipay mobile-payment service, is an affiliate of Alibaba Group Holding, which also owns the South China Morning Post.