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BOC extends first M&A loan

By Yang Zhen (chinadaily.com.cn)
Updated: 2009-03-13 16:20

Bank of China's Beijing branch offered a 680-million-yuan new loan to Huaneng Power International to help the nation's biggest generator with its mergers and acquisitions (M&A), the lender said in a statement on Friday.

Related readings:  BOC targets 500b yuan in new loans this year   BOC reports strong SME loan growth  Soho gets 10b yuan credit line  BOC to lend Hubei $44b for construction

This is the first time BOC has issued a loan to support a company's M&A activities. China's banking regulator lifted restrictions last November, allowing Chinese lenders to make loans for M&A purposes.

In addition, BOC's branch in Zhejiang province issued a 260-million-yuan new loan to Zhejiang DY-link Group to support its acquisition of a local automaker, the bank said in a separate statement on Friday.