Cross-border Loans
The Korea Development Bank arranged the nation’s first cross-border structured finances for non-residents for China’s Ping An Lease.
KDB announced that it granted structured foreign currency loans of US$100 million (107.75 billion won) to China’s Ping An Lease as of Jan. 16, utilizing the domestic capital market.
By using its special purpose company, KDB issued asset-backed commercial paper (ABCP) in the domestic capital market and raised US$100 million from the won-dollar swap. Then, the bank lent it to Ping An Lease. Ping An Lease belongs to Ping An Group, which has a total of 24 subsidiaries including China’s second largest life insurer Ping An Insurance. Also, Ping An Lease is China’s tenth largest lease company.
Kim Young-mo, head of the capital market sector, said, “Based on the low interest situation in the domestic capital market and the abundance of won liquidity, this is the nation’s first cross-border structured loan for non-residents. We will keep taking the lead in the globalization of the Korean capital market, pushing into the overseas market.”