OCBC HK$38.4bn bridge for Wing Hang acquisition to test liquidity
Singapore’s Oversea-Chinese Banking Corp is seeking a chunky HK$38.4bn ($4.95bn) loan to fund its acquisition of Wing Hang Bank, with three lenders underwriting the whole fundraising. The large size of the debt will test market liquidity, but bankers away from the transaction reckon lenders will put their faith in the OCBC name, writes Rashmi Kumar.
Bank of America Merrill Lynch, HSBC and JP Morgan are equally underwriting the bridge loan, which is expected to have a tenor of one year, according to sources. But those following the deal have not dismissed the idea that more banks can still hop on at the top