J.P. Morgan & Co. has launched its first syndicated loan for China by helping arrange $120 million in financing for construction of the $1.3 billion Yanghzhou Thermal Power Project.
The financing includes a $90 million loan and a yen-denominated $30 million loan.
Morgan is jointly arranging the $90 million loan with Bank of Tokyo International Ltd., and Dresdner Ltd., the Hong Kong-based unit of Germany's Dresdner Bank.
Banks, Insurance Firms Participating
A total of 12 banks, mainly Japanese, are participating in the syndication. The 15-year loan has a five-year grace period. Repayment of the principal is guaranteed by the World Bank after 10 years.
The $30 million yen-denominated loan runs for 15 years and was arranged by Nippon Life Insurance Co.
Four life insurance companies are helping provide the yen loan.
Stepping Up Asian Operations
This financing comes at a time when Morgan has been stepping up its operations in Asia, notably in India and China.
The bank opened representative offices in Bejing and Shanghai in February, and is pursuing several different types of business in China, inclduing capital raising and advisory work.
"We'd expect to see a variety of financing structures from loans of public market bond and equity isues for China," a spokesman for Morgan said.
