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Deutsche Bank arrange China’s largest structured commodity trade finance facility

Deutsche Bank today announced that it has, in collaboration with Duferco, successfully arranged a USD1.5 billion two-year syndicated structured steel pre-payment term loan facility for Tangshan Iron & Steel Group Co., Ltd (‘Tangsteel’). 

Tangsteel is a key subsidiary of one of the largest state-owned steel producers in China. This deal sets a new industry record as the largest structured commodity trade finance facility for a Chinese company, surpassing the previous record of USD800 million, which was also lead arranged by Deutsche Bank for Tangsteel in 2013. 

Lead arranger and bookrunner

Deutsche Bank is the Coordinating Mandated Lead Arranger and Bookrunner for this fourth consecutive structured pre-payment finance facility for Tangsteel – the first closed in May 2012 for USD200 million, the second in February 2013 for USD300 million and the third in October 2013 for USD800 million. Deutsche Bank AG, Hong Kong branch acted as the Facility Agent and Account Bank, and DB Trustees (Hong Kong) Limited as the Security Agent for all four facilities. 

The oversubscribed facility had participation from 22 banks globally. The funding will be used to facilitate and support Tangsteel’s exports of steel products to Duferco Asia Pte Ltd and Duferco SA (collectively ‘Duferco’), via Tangsteel’s offshore trading platform, Sinobiz Holdings Ltd. 

CTMfile take: This another important example of how financing and cash management in China is becoming internationalized, and how the global network banks are taking an increasing share of the new business.

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