China Construction Bank Said to Buy RBS Loans in AustraliaMariko Ishikawa
China Construction Bank Corp. agreed Thursday to pay about A$2 billion ($1.5 billion) for Royal Bank of Scotland Group Plc loans in Australia, according to people familiar with the matter.
An announcement is expected tomorrow, according to the people, who asked not to be identified because they aren’t authorized to speak publicly about the transaction.
Chinese and Japanese banks are boosting their loan portfolios at a time when their European counterparts are striving to meet more stringent capital requirements. Japan’s Mizuho Financial Group Inc. agreed this year to buy North American loans from RBS for about $3.5 billion to expand its client base in the region.
RBS has 49 syndicated loans on its Australian books, of which 40 were led by the U.K. bank, according to data compiled by Bloomberg.
Spokesmen for CCB declined to comment and RBS’s Hong Kong-based spokesman couldn’t be reached for comment.
Chinese lenders’ share of global syndicated loans jumped to $126 billion last year from $101 billion in 2013 and the number of deals increased by 50 percent, according to data compiled by Bloomberg.