Deutsche Bank (DB) has partnered with Duferco in arranging a US$800m structured steel pre-payment term loan facility for China-based Tangshan Iron & Steel Group (Tangsteel), making it the largest structured commodity trade financing facility ever completed for a Chinese company.
The bank acted as the coordinating mandated lead arranger and in 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 products exports to Duferco Asia Pte and Duferco SA (collectively ‘Duferco’), via Sinobiz Holdings – Tangsteel’s Hong Kong-based trading platform.
The facility is the third consecutive pre-payment financing lead arranged by DB and Duferco, for Tangsteel; the first closed in May 2012 for US$200m and the second in February 2013 for US$300m. DB Trustees (Hong Kong) acted as the security agent and Deutsche Bank AG, Hong Kong branch as the facility agent and account bank for the oversubscribed facilities.
“We are delighted to have arranged three pre-payment structures for Tangsteel over the past 18 months,” said Frank Wu, DB’s regional head of structured commodity trade finance – Asia Pacific, global transaction banking. “Both Tangsteel and Duferco are world-class companies in the steel industry and have long-standing relationships with DB. The overwhelming market response to this transaction clearly demonstrates the strong interest in this type of innovative structured trade financing solutions.”
“We are pleased with the continued funding support we have received from a syndicate of banks led by Deutsche Bank, totalling USD1.3 billion, especially given the recent global economic conditions,” said Yidong Li, vice president (VP) of Tangsteel.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.