China Bank prepays $158-m, 3-year loan
China Banking Corp., the eighth-largest lender in terms of assets, said Monday it paid off a three-year $158- million syndicated loan a year ahead of schedule. It 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,” China Bank executive vice president and chief operating officer William Whang said in a statement to the stock exchange.
Whang said the bank was able to repay the loan sooner because of the “favorable changes in market conditions.”
The loan was paid in two tranches: $60 million in March this year and the remaining balance on June 29, 2017.
China Bank successfully returned to the capital market in June 2015 after its $125-million floating rate certificates of deposit 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 Ltd. was the mandated lead arranger and book runner. KDB Group (The Korea Development Bank - Seoul head office, KDB Asia Ltd. – 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.
China Bank posted a 6-percent increase in net income in the first quarter to P1.47 billion, driven by strong growth in lending and core fee-based income.
Operating income increased 7 percent in January to March to P5.66 billion from the same period last year. Net interest income rose 14 percent to P4.47 billion, driven by the 16-percent growth in gross loan portfolio.
Non-interest income, excluding trading gains, grew 22 percent to P1.08 billion from the gain in service charges, fees from bancassurance, investment banking and trust and income from asset sales.
Core recurring income, or operating income excluding trading gains, went up 15 percent to P5.55 billion from P4.80 billion in the first quarter of 2016.