China Bank Settles $158M Loan

Makati—(PHStocks)—China Banking Corp. (China Bank, PSE: CHIB) has paid off one year ahead of schedule the three-year US$158 million Syndicated Loan that was originally scheduled to mature in June 2018.

“The strong growth in foreign currency deposit has enabled us to not only raise the balance earlier than expected,” said William C. Whang, EVP & China Bank Chief Operating Officer.

The Bank likewise confirmed that it also took advantage of favorable changes in market conditions to be able to repay the loan sooner. The loan was paid in two tranches: $60 million was paid in March of this year and the remaining balance on June 29, 2017. China Bank successfully returned to the capital markets in June 2015 with this facility since its $125 million floating rate certificates of deposit (FRCD) issue in 1996 and 1997. The proceeds of the loan were deployed into better yielding assets as well as funding for corporate borrowers and project financing deals.

Australia and New Zealand Banking Group Limited was the Mandated Lead Arranger and Book Runner. KDB Group (The Korea Development Bank – Seoul Head Office, KDB Asia Limited – Hong Kong) and Mizuho Bank, Ltd – Singapore Branch were the Mandated Lead Arrangers. Doha Bank Q.S.C. was the Lead Arranger. The Arrangers were Mega International Commercial Bank Co., Ltd., CTBC Bank Co., Ltd. Singapore, The Shanghai Commercial & Savings Bank, Ltd., Taiwan Cooperative Bank, and Taishin International Bank Co, Ltd.

Founded in 1920, China Bank is one of the largest private universal banks in the Philippines providing a full range of banking products and services to corporate, commercial, and retail customers through 561 branches to date. It also offers bancassurance and insurance brokerage services through its subsidiaries China Bank Manulife Life Assurance Corporation (MCBLife) and China Bank Capital Corp., respectively, and a range banking products and services for the retail and SME (small and medium enterprises) markets through China Bank Savings.

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