TOKYO - Several of Japan's largest banks, led by Mitsubishi Bank Ltd. and Bank of Tokyo Ltd., have agreed to offer a syndicated loan to China. The amount of the loan, the term, and interest rates have not been worked out, a spokesman for Mitsubishi said.
The loan will go to the Bank of China, which is to fund an electric power plant in Huaneng Shangan in Hebei province, an ethylene plant in Dongying in northeastern China, and a development project for an oil field in the Tarim basin in northwestern China, the spokesman said.
Other banks to join the loan include Dai-Ichi Kangyo Bank Ltd., Sumitomo Bank Ltd., Sakura Bank Ltd., Sanwa Bank Ltd., Fuji Bank Ltd., and Tokai Bank Ltd.
Industrial Bank of Japan Ltd., Long-Term Credit Bank of Japan Ltd., and Nippon Credit Bank Ltd. are also to join the loan.
The financial daily Nihon Keizai Shimbun reported over the weekend that the loan period would be five years at some 60 basis points above the London interbank offered rate.