Yue Xiu Lines up US$8bn for Nanyang bid

摘要

Conglomerate yue xiu group is looking to raise an US$8bn one-year bridge loan for its proposed bid to acquire Nanyang Commercial Bank. DBS Bank, HSBC, ICBC Asia, Nomura and Standard Chartered are in discussions with Guangzhou-based Yue Xiu to provide the loan, according to people familiar with the transaction. The proposal is the latest in a wave of Chinese companies seeking to expand their global footprints through overseas mergers and acquistlons. It would be Yue Xiu's second purchase of a bank in less than two years, after the Guangzhou government investment vehicle acquired a controlling stake in Hong Kong-listed Chong Hing Bank In 2013. "China is a big driver," said a Hong Kong-based head of loan syndication at a global investment bank. "There's going to be lots of outbound activity in the second half, ranging from leveraged buyouts to mergers and acquisitions of these businesses as they look to grow."