CHINA CONSTRUCTION BANK MANDATES 150 MLN DLR LOAN
The People's Construction Bank of
China is launching its first international borrowing by
mandating four foreign banks for a 150 mln U.S. Dlr loan, one
of the lead managers Banque Indosuez said.
    The other three lead managers are Bank of Tokyo, Citicorp
International Ltd and the Industrial Bank of Japan Ltd.
    The 10 year loan has a 4-1/2 year grace period. Interest is
set at 1/8 percentage point over London interbank offered rate
for the first eight years, rising to 1/4 pct for the remaining
two years. There is a 3/16 pct management fee and an
unspecified, but very small, commitment fee.
    Syndication of the loan is expected to start soon and it
should be signed in Shanghai next month.
    The Construction Bank, which is one of four specialist
banks in China, focuses on infrastructure and heavy industrial
projects.
    The funds raised will partly finance two ethylene factories
near Shanghai. Construction of the plants, which are a major
item in the current five year plan, will begin soon.
    The plants will cost more than 300 mln dlrs. The remainder
of the funds will come from export credits and domestic
borrowings.
 REUTER
