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China Cinda Asset Management has sent out a request for proposals for a loan of around $5bn to back its bid for the acquisition of Nanyang Commercial Bank, according to sources.
The asking price for the acquisition of Nanyang is $8.8bn, of which up to $5bn is likely to come via the loan, said a source close to the situation.
"The company's sort of self syndicating it," he said. "They've sent the RFP but the deal's already underwritten on a bridge basis by China Construction Bank."
It is understand that CCB has already provided a $5bn bridge to China Cinda, which is looking to acquire Nanyang from Bank of China. But details have not been disclosed at this stage, and it is unclear whether proceeds from the syndicated deal will go towards repaying that bridge.
However, the source added that Cinda is looking at long tenors of five years or seven years, which could prove unpopular.
"For a shorter dated component, like a bridge, I am sure there will be interest. But people may not look at it if it's five years or seven years."
China Cinda had its beginnings in April 1999....