(The following item was previously published by Basis Point, a Thomson Reuters publication)
By Kane Wu
HONG KONG, Jan 9 (Reuters Basis Point) - The Guangzhou government is seeking an around Rmb10bn ($1.58 billion) syndicated loan for subsidised housing projects in the city, banking sources told Thomson Reuters Basis Point.
Sources said China Development Bank is the mandated lead arranger of the mega loan, which will likely be split up into separate sub-facilities catering to different housing projects. CDB Guangzhou could not be reached for comment.
Major state-owned banks and several commercial banks in Guangzhou have been invited to join the deal, according to sources.
Sources said the tenor is around 10 years and that the margin "should not be too attractive" as it's a government project financing. However they added the loan has not been officially launched to syndication yet, so terms are subject to change.
The Housing Office under the Land Resources and Housing Management Bureau of Guangzhou is in charge of the subsidised housing projects. But sources said the loan could be borrowed via special purpose vehicles.
The Housing Office of Guangzhou told local newspaper Nanfang Daily last week that currently there were 20 subsidised housing projects under construction in the city and that 10,494 housing units would be ready for use in 2012. ($1 = 6.3095 Chinese yuan)