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23.
Participation in syndicated loans: the Bank of
China first entered Hong Kong's international loan syndication market in 1979, and has continued to build up its activities in this area. In September 1985, a HK$610
million loan for the development of the Admiralty II site was arranged with a syndicate of 12 banks led by the Bank
of China, Sumitomo Bank and Overseas-Chinese Banking Corporation Ltd. In December 1985, the Bank of China joined a syndicate of banks, led by Citicorp International, Schroders Asia and Wardley, in a $390
million medium-term export credit agreement with the Kowloon Canton Railway Corporation for-financing the Tuen Mun Light Rail project. Another syndicated loan of US$145
million to finance the building of a modern exhibition complex in Shanghai is expected to be finalised soon. The facility will be provided by 15 banks and will be
lead-managed by Hongkong-based CCIC Finance (a CSOB DTC).
Other examples include a financial package of US$20 million to be organized by Sin Hua Trust, Savings and Commercial Bank (a CSOB),..for the construction of a hotel/office project in Beijing. A syndicated loan of US$45 million will be lead-managed by the Bank of China and CCIC Finance Ltd. in Hong Kong for the construction of the Shangri La Hotel in Beijing. Further, the Bank of China, Citicorp International, and the Hongkong and Shanghai Bank jointly plan to arrange a $1 million syndicated loan for the Shajiao coal-fired power station in Shenzhen, which is expected to finalise in April 1986.
24.
Recently, the Bank of China Group indicated that it had participated in eleven syndicated loans in 1985, amounting to HK$5.1 billion, providing 15% of the funds
and acting as lead manager in five. Half of those loans
to be used for financing projects in China, including
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