Taiwan-based Shanghai Commercial & Savings Bank (上海商業儲蓄銀行) said on Tuesday that it has participated in a 150 million yuan (US$24.2 million) syndicated loan extended to a China-based financial leasing company.
The bank said the loan is Taiwan’s first cross-border yuan-denominated transaction of this kind and was set up by three banks in Taiwan, Hong Kong and China.
The other two lenders in the loan syndication are China’s Bank of Shanghai (上海銀行) and Hong Kong’s Shanghai Commercial Bank (上海商業銀行), and the loan was provided to Chailease International Finance Corp (仲利國際租賃).
The Taiwanese bank and its two partners are business affiliates that have cross-shareholding ties.
Bank of Shanghai serves as the manager of the syndication, the Shanghai Commercial & Savings Bank said, without disclosing the terms of the syndicated loan.
Chailease International, which was set up in Shanghai in 2005 and is now wholly owned by Taiwan-listed Chailease Holding Co (中租控股), now operates offices in 17 Chinese cities.
Shanghai Commercial & Savings Bank has become very active in providing yuan-denominated loans after financial authorities in February lifted a ban on local banks conducting yuan transactions, said Lin Chih-hung (林志宏), a spokesman for the bank.
As of the end of April, yuan-denominated loans accounted for about 25 percent of the Taiwanese bank’s total lending, he said.
In response to a request from its shareholders, Lin said the bank has set up an evaluation committee to study the possibility of launching a listing on the TAIEX or on the over-the-counter market.
In the first five months of this year, Shanghai Commercial & Savings Bank posted NT$4.88 billion in pretax profit, up 22 percent from a year earlier, while the bank’s net profit rose 29.46 percent from a year ago to NT$4.20 billion, with earnings per share of NT$1.13.