【Micro Headlines】Industrial Bank Qingdao Branch successfully implemented its first M&A loan for a private listed company major asset restructuring at the branch level

(Source: Qingdao Finance)

Recently, the Industrial Bank Qingdao Branch successfully issued its first major-asset restructuring and acquisition loan to a private listed company. The loan provides 40.09 million yuan in cross-border RMB funding support to a high-quality local listed company. The loan term is as long as 7 years and is used exclusively to support the company’s acquisition of the core equity interests of an upstream raw-material supplier. The successful launch of this business not only marks a new breakthrough in the branch’s professional service capability in financing for listed-company mergers and acquisitions, but also serves as a key practice of the bank’s deep implementation of the “commercial bank + investment bank” strategy, using cross-border financial tools to help integrate real-economy industrial supply chains.

To precisely match the cross-border acquisition needs with a total consideration of approximately 70 million yuan, the Industrial Bank Qingdao Branch has “accelerated” its financial services. Coordinating with the investment banking department of the branch and the Hong Kong West Road Branch, it quickly assembled a dedicated team and deeply involved itself in the transaction process, tailoring a long-term financing plan for the company. The team closely followed the regulatory approval timetable for major asset restructuring and, within an extremely short period of time, completed the entire process from due diligence to credit approval. This allocation of funds over a period of 7 years precisely aligns with the company’s long-term development plan. It effectively alleviates cash-flow pressure in the initial stage of asset integration, providing key support for the company to achieve independent procurement of raw materials and lock in lower production costs.

Under the premise of compliant and prudent operations, the branch positions merger-and-acquisition financing as an important lever to cultivate new quality productive forces. By strictly following the new rules issued by the National Financial Regulatory Administration for the management of merger-and-acquisition loans by commercial banks, the bank ensures that the loan size as a proportion of the transaction consideration meets the regulatory upper limit, while fully leveraging its professional advantages in controlling-type merger-and-acquisition loans. After completion of the acquisition, the capacity of the borrowing company’s core products will be highly matched with business needs, further consolidating its competitive advantage within the industry and injecting new momentum into the optimization and upgrading of the regional industrial structure.

Next, the Industrial Bank Qingdao Branch will continue to deepen its efforts in the M&A financing market and further implement the “commercial bank + investment bank” strategy. By relying on a diversified financial service system, the branch will focus on core needs such as improving quality and efficiency for listed companies and optimizing industry and supply chains. It will continuously innovate comprehensive financial products such as cross-border M&A and equity financing, providing solid financial support for more enterprises’ resource integration and strategic expansion, and helping regional economic high-quality development reach a new level.

Source: Qingdao Daily

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