Mizuho, Standard Chartered arrange US$155mn syndicated loan for Santander unit

Monday, January 10, 2011

Mizuho Corporate Bank and the UK's Standard Chartered have closed a two-year, US$155mn cross-border syndication for Santander Brasil (NYSE: BSBR) to help the Brazilian bank further diversify its funding sources in Asia, Mizuho said in a press release.

"This is a highly strategic transaction for us, as it is the first one that we placed in the Asian bank market, where we are keen on developing new banking relationships. We foresee this syndicated loan as a spearhead for our funding strategy in this region," said Maximiliano Herrera Foessel, Santander Brasil's head of structured and international funding.

Airton Villafranca, CEO of Standard Chartered's Brazilian investment banking unit, recently told BNamericas that Brazilian banks will increasingly look to Asian markets to fund lending, since many of their corporate clients are doing more and more business with Asian companies.

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Mizuho and Standard Chartered were the syndicated loan's mandated lead arrangers and bookrunners. In addition to the bookrunners, five Asian banks joined the deal, with Bank of Taiwan, Export-Import Bank of the Republic of China and Malayan Banking Berhad as lead arrangers, and Bank SinoPac and The Shanghai Commercial and Savings Bank as lead managers.

The Brazilian unit of Spain's Santander (NYSE: STD) is the third-largest private sector bank in Brazil in terms of assets, according to Brazilian central bank BCB, with an 11% market share.

Mizuho Corporate Bank is a subsidiary of the Japan-based Mizuho Financial Group (NYSE: MFG).