1. 10/3/12 Chinese banks step up lending in the US - FT.com
1/2www.ft.com/intl/cms/s/0/90cd25de-ec9b-11e1-8e4a-00144feab49a.html#axzz28FxyZRye
August 28, 2012 4:47 pm
Chinese banks step up
lending in the US
By Kandy Wong in New York
China’s top banks are stepping up their lending activities in the US as large US companies
diversify their funding sources and seek to penetrate more deeply into the world’s second­
largest economy.
Chinese banks’ share of US syndicated lending has risen to 6.1 per cent of the total market
so far in 2012, up from 5.1 per cent last year, according to data from Dealogic. So far this
year, the total value of syndicated loans from Chinese banks into the US has reached $51bn.
Liao Qiang, Chinese banking analyst at Standard & Poor’s,
said: “Many global banks have been deleveraging as a result
of the 2008 global financial crisis and the debt crisis in Europe. Their retreat in lending
markets provides opportunities for Chinese banks to deepen relationships with the
multinational companies and steadily increase their international presence.”
The increased syndicated lending by Chinese banks comes as their balance sheets compare
favourably with US counterparts.
Standard & Poor’s last year upgraded the long term credit ratings of Bank of China and
China Construction Bank from A­ to A. The credit rating agency maintained the rating of
Industrial and Commercial Bank of China (ICBC) at A. At the same time, the long­term
credit ratings of Bank of America, Citigroup and Goldman Sachs were cut to A­.
Among the latest deals, Bank of China is involved in a $1.4bn syndicated loan to Zimmer
Holdings, the medical device company, and Bank of East Asia is part of a $575m loan
syndication to Constellation Brands, the wine and beer group.
Industrial and Commercial Bank of China took part in an $11.8bn syndicated loan for
Walmart, the US retailer.
Bi Mingqiang, general manager of ICBC’s New York branch, said the bank was seeking long­
term lending relationships with US companies which had a presence in China and
elsewhere. The bank provides credit to United Parcel Service, Pfizer and Dell.
UPS said linking with a Chinese bank had made it easier to conduct business in renminbi,

2. 10/3/12 Chinese banks step up lending in the US - FT.com
2/2www.ft.com/intl/cms/s/0/90cd25de-ec9b-11e1-8e4a-00144feab49a.html#axzz28FxyZRye
Printed from: http://www.ft.com/cms/s/0/90cd25de­ec9b­11e1­8e4a­00144feab49a.html
Print a single copy of this article for personal use. Contact us if you wish to print more to distribute to others.
© THE FINANCIAL TIMES LTD 2012 FT and ‘Financial Times’ are trademarks of The Financial Times Ltd.
You may be interested in
Risk aversion lifts US dollar Sodexo shares rise on broker upgrade
US manufacturing returns to growth 'We wanted something that screamed Europe'
Palm oil prices hit 3­year lows M&A: Global interest keeps market buoyant in spite
of downturn
A proud Pole taking on the world Loop Collective/Upload Festival, Vortex, London
The Paris baker: Chocolate, cinnamon and almond
torte
iPhone 5 proves Apple's mastery
while Dell said it had developed relationships with Chinese banks for the same reason.
CCB’s clients include General Electric, and the bank has also had discussions with
Caterpillar, Walt Disney, Tiffany and Cargill.
John Weinshank, head of corporate banking at CCB, added that lending was only a starting
point to extend into other businesses, such as deposit and trade finance.
CCB’s lending business in the US has risen from $600m in 2009 to $2bn this year, while
ICBC, which established a New York branch in 2008, had made more than $1.3bn of loans
to US companies at the end of 2011 compared with zero at the start of 2009.
Last year, ICBC, Bank of China and China Merchant Bank participated in a $6bn syndicated
loan to Duke Energy – the first time the North Carolina­based energy group borrowed
money from Chinese banks.
“There’s a global relocation of capital from the west to the east. This is an evolution
process,” said Mr Weinshank. “Nowadays, the Brics banks [in Brazil, Russia, India and
China] have a seat at the table.”
He said ratings upgrades of Chinese banks represented a turning point for large US
companies to consider Chinese groups as lenders.