Joint Participation in US$1 Bil. Loan to Afreximbank
Shinhan Bank and Hana Bank have signed an agreement with the African Export-Import Bank (Afreximbank) to participate in a US$1 billion (1.2 trillion won) syndicated loan.
The two banks’ joint participation in a syndicated loan is the first case of cooperation between Shinhan Financial Group and Hana Financial Group since they signed a memorandum of understanding last month to promote global competitiveness.
The two lenders announced on June 4 that they signed the contract to participate in a US$1 billion (1.2 trillion won) syndicated loan arranged by Afreximbank. Shinhan Bank lends 35 million euro (US$39 million) and Hana Bank lends 23 million euro (US$26 million) for this contract. This syndication loan is led by Shinhan Bank’s IB desk in London, with Hana Bank taking part with Shinhan’s assistance.
A syndicated loan refers to a loan provided by a group of lenders to a borrower such as a country, company, or organization, under the same conditions.
Afreximbank is a Pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The bank runs trade promotion programs for central banks of its members and state-owned commercial banks and supports foreign currency liquidity for grade finance. Among the 54 African countries, 51 are members or shareholders of the bank.
Shinhan Bank has been acknowledged for its various international banking achievements such as project financing for the development of an offshore wind power plant in the United Kingdom, project financing for optical communications in the United Kingdom and Germany, and experiences in other similar syndicated loan projects. Shinhan Bank also led a syndicated loan contract for Afreximbank in September 2018.
Hana Bank has a long and stable experience in social development and renewable energy-related projects such as a gas-fired plant project in the United States and a tunnel and road construction project in the United Kingdom. Hana Bank has also participated in a syndicated loan contract for Afreximbank in 2014.