Economics
ChemChina $50 Billion Loans Flag New Chapter in China Debt Binge
- `China should act now to solve the SOE debt problem:' SocGen
- Beijing Enterprises, China Cinda also borrow for overseas M&A
A China National Chemical Corp., also known as ChemChina, building in Beijing.
Photographer: Fred Dufour/AFP via Getty ImagesThis article is for subscribers only.
Just as Moody’s Investors Service warns of the strain on China’s finances of debt among state-owned enterprises, the companies are loading up on record overseas loans to buy assets around the world.
China National Chemical Corp., or ChemChina, got $50 billion in such financing for its $43 billion purchase of Swiss pesticides producer Syngenta AG, including $35 billion that’s being or will be syndicated offshore, people familiar with the matter have said. That brings loans syndicated offshore for Chinese firms undertaking acquisitions, including those in the pipeline, to at least $36.3 billion this year, compared with the record $23.3 billion completed in 2015.