Bloomberg News

China Development Bank Said to Wait Until 2012 for Offshore Loan

November 16, 2011

Nov. 16 (Bloomberg) -- China Development Bank Corp. has delayed signing a $500 million offshore loan due to market volatility, according to three people familiar with the matter.

The state-owned policy bank may pursue the loan again early next year, one of the people said, asking not to be identified because the details are private.

China Development Bank, which is the nation’s biggest foreign currency lender, had been in talks for a U.S. dollar- denominated, three-year offshore loan in Hong Kong, two people with direct knowledge of the deal said in September. It was offering to pay a so-called all-in fee in the mid 100 basis- point range over the London interbank offered rate, the people said at the time.

Some banks did not agree to the loan because the fee was considered too low in an environment where the cost of funds is rising, the three people said today.

--Editor: Katrina Nicholas

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net


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