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ChemChina raises $20 bln for Syngenta deal via perp bonds, preferred shares
May 25, 2017 / 4:29 AM / 4 months ago

ChemChina raises $20 bln for Syngenta deal via perp bonds, preferred shares

HONG KONG, May 25 (Reuters) - ChemChina has raised $20 billion in perpetual bonds and preferred shares to finance its acquisition of Swiss seeds maker Syngenta, according to a regulatory filing by the state-owned Chinese company.

Bank of China (BoC) has invested $10 billion via a perpetual bond, making the Chinese lender the single largest financier in the $44 billion deal, according to the filing which also shows state-owned asset manager China Reform Holdings Corp Ltd has provided $7 billion via a perpetual bond.

China’s Industrial Bank Co Ltd has invested $1 billion through the same means, while Morgan Stanley has provided $2 billion via convertible preferred shares.

ChemChina is currently restructuring the financing of its Syngenta deal to reduce its short-term debt, but the Chinese company still has $19.51 billion in loans that will need to be refinanced within 18 months, the filing, dated May 18, shows. (Reporting by Carol Zhong and Julie Zhu in Hong Kong, and Alasdair Reilly in London; Additional reporting by Aizhu Chen in Beijing, Prakash Chakravarti in Hong Kong and Tessa Walsh in London; Writing and additional reporting by Michelle Price; Editing by Muralikumar Anantharaman)

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