Tangsteel gets $800m loan from Deutsche Bank
This is the largest structured commodity trade financing facility ever completed for a Chinese company.
The bank acted as the coordinating mandated lead arranger and, in close consultation with Duferco, secured the participation of 10 international banks to structure the 24-month term loan, which will facilitate the pre-payment of steel product exports to Duferco Asia Pte Ltd and Duferco, via Tangsteel's Hong Kong-based trading platform, Sinobiz Holdings Ltd.
The facility is the third consecutive pre-payment financing arranged by Deutsche Bank and Duferco for Tangsteel - the first closed in May 2012 for $200 million and the second in February 2013 for $300 million.
"We are pleased with the continued funding support we have received from a syndicate of banks led by Deutsche Bank, totaling $1.3 billion, especially given the recent global economic conditions," said Li Yidong, vice president of Tangsteel.
Thomas Patrick, chief financial officer of Duferco International Trading Holding SA, said the company's relationship with Tangsteel is expanding rapidly and the pre-payment financing facilities have arranged together with Deutsche Bank are a clear example of that dynamic growth. ■