Lenders worry but must not ignore $4bn Shuanghui loan

By Dariush Hessami
04 Jul 2013

Chinese pork producer Shuanghui International is tapping the Asian loan market for a $4bn financing to back its acquisition of US company Smithfield Foods. The transaction has raised complaints among loans bankers about the deal’s structure — and what they say is a far too aggressive margin. But bankers still seem unlikely to let the loan slip out of their hands, writes Rashmi Kumar.

Bank of China has fully underwritten the deal and met some 14 potential lenders last week to drum up interest in the terms. But the only ticket size opened up so far is a whopping $1bn, and banks have been asked for commitments by July 11. 

The chunky ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial