Far East Horizon completed the largest overseas single debt financing in the Company's history!
Recently, Far East Horizon has successfully completed a contract for a three-year loan of 587 million US dollars with overseas club. This is the second time in the last two years that Far East Horizon set up a U.S. dollar syndicate in the overseas market. It is also the largest single debt financing project ever opened by Far East Horizon in its history.
Amongst the rapid changes in the market, Far East Horizon seized the "window period"
Over the past two years, the devaluation pressure of the Renminbi has intensified, and the overall cost of overseas fund-raising has periodically risen. Far East Horizon has taken the initiative to reduce the proportion of overseas fund-raising. Nevertheless, the Company has always been closely watching the trend of overseas funds.
In the first half of this year, liquidity in domestic funds became tighter and Far East Horizon keenly captured the signal of sufficient liquidity in the overseas syndicate market. On the other hand, the overseas branches of various domestic banks have put higher demands on services. Far East Horizon has acted decisively, seized the withdrawal window, raised the Company's first overseas Chinese-funded club loans.
China Construction Bank (Asia) has played a role as the lead agency and coordinator in club loan, Bank of Communications Macau Branch, ICBC (Asia), Bank of China Macau Branch, Minsheng Bank Hong Kong Branch and Pudong Development Bank Hong Kong Branch have respectively assumed the position of leading and arranging banks.
It has set multiple company records in this overseas syndicated transaction:
This transaction is a landmark event for Far East Horizon to resume its overseas syndicate market, reflects the recognition of Far East Horizon Credit by external agencies and their expectation toward the Company's future development. At the same time, this transaction has a far-reaching impact and is of great significance for the Company's fund-raising work, which is reflected in the following sections:
1. Large scale: 587 million U.S. dollars in scale sets a record in Far East Horizon’s history for a single financing.
2. High efficiency: Short operation from the initial discussions over terms of the contract to the signing of the final contract, which effectively guaranteed the funding arrangements for Far East Horizon.
3. Pricing criteria: Comprehensive comparison of the market pricing between other borrowers and the company's existing financing costs, which effectively reduced its financing costs.
4. Strong institutional support: Took full account of the differences between Chinese and foreign-funded institutions, selected six mainstream banks with pure Chinese-funded background for the first time to set up syndicates, took into consideration the principle of maximizing the credit line and the efficiency of examination and approval, proceeded in a concerted manner.
5. Rigid benchmarking: Set a new benchmark for overseas large-scale financing from the contract terms, pricing, access scale and project efficiency.
Adhere to the philosophy of "resource globalization", and continue to expand overseas capital markets
Always upholding the mission of "gathering global resources and boosting Chinese industry", adhering to the "resource globalization" financing strategy, Far East Horizon has spent a long time digging domestic and foreign capital markets, and reduced corporate financing costs through building a diversified financing product system with continuous frontier financing innovation, to provide a resource guarantee for the Company’s operation.
In the future, Far East Horizon will give full play to the advantages of "resource and management globalization", pay close attention to the changes in the domestic and overseas capital environment, make use of the comparative advantages of different capital markets, and actively obtain efficient resources to help promote the Company's business.