Large U.S .corporations are beating the path to Chinese banks in a bid to secure additional funding sources.
In an arrangement that works both ways, U.S. multinational companies are seeking to increase their presence in the world’s second-largest economy, which in turn provides opportunities for Chinese banks to strengthen their clout with large multinationals and deepen their international presence, according to a report on FT.com.
With stronger balance sheets than their U.S. counterparts, Chinese banks’ syndicate loans into the US have reached $ 51billion, or 6.1% of the total market, so far in 2012. This includes such key deals as Bank of China’s $1.4bn loan to medical device makers Zimmer Holdings and Bank of East Asia’s $575m loan to Constellation Brands, the wine and beer group.
Standard & Poor’s last year upgraded the long term credit ratings of leading Chinese banks thereby consolidating their image as dependable lenders in the eyes of large global companies.