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APAC Chart of the Week: Offshore borrowings by Chinese auto/autoparts makers, car renters fall 85% YoY in 1H20; 2H outlook strong

APAC Chart of the Week: 13th August 2020

The volume of offshore syndicated and club loans borrowed by Chinese auto and auto parts makers as well as car-rental companies fell 85.1% YoY to USD 390m in1H20 from USD 2.62bn in 1H19 amid the COVID-19 pandemic.

However, the volume outlook for 2H20appears bright with at least USD 4.41bn-equivalent loans across four deals waiting to close. If all the four deals get across the line, the 2H20 volume will surpass the USD 3.24bn recorded in 2H19.

Two of the deals still in the market are from state-owned BeijingAutomotive Group (BAIC): a EUR2.8bn (USD 3.05bn) eight-month bridge loan to part-fund its proposed stake increase in Daimler AG, and a EUR 700m-equivalent (USD 766m) three-year term loan at its indirect subsidiary BeijingHainachuan Automotive Parts Co Ltd.

The other two are Hong Kong- and shanghai-listed carmaker Great WallMotor Co Ltd’s USD440m-equivalent three-year unsecured bullet loan, and HongKong-listed auto-parts maker Minth GroupLtd’s USD 150m three-year senior unsecured term loan with an unspecified greenshoe option.

In another potential deal, Debtwire reported on 30 July that at least one bank has approached Beijing-backed JinggangshanBeiqi Investment Management Co Ltd, which has signed agreements to acquire a leading stake in Car Inc, about arranging an offshore syndicated loan to refinance the car-rental company's two bonds due in 1H21. Beijing-owned automaker The Baic Group is the leading shareholder of Jinggangshan.

Jason Huang-Jones APAC Data Manager Debtwire
Jason Huang-Jones APAC Data Manager Debtwire

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