Treasury Management Internation Logo

Deutsche Bank provides Tangsteel with USD800 million structured pre-payment finance facility


Deutsche Bank today announced that it has together with Duferco, successfully arranged a USD800 million structured steel pre-payment term loan facility for China-based Tangshan Iron & Steel Group Co., Ltd (‘Tangsteel’), making it the largest structured commodity trade financing facility ever completed for a Chinese company.

Deutsche Bank acted as the Coordinating Mandated Lead Arranger and in close consultation with Duferco, secured the participation of ten international banks to structure the 24-month term loan, which will facilitate the pre-payment of steel products exports to Duferco Asia Pte Ltd and Duferco SA (collectively ‘Duferco’), via Tangsteel’s Hong Kong-based trading platform − Sinobiz Holdings Ltd.

This facility is the third consecutive pre-payment financing lead arranged by Deutsche Bank and Duferco, for Tangsteel – the first closed in May 2012 for USD200 million and the second in February 2013 for USD300 million. DB Trustees (Hong Kong) Limited acted as the security agent and Deutsche Bank AG, Hong Kong Branch as the facility agent and account bank for these oversubscribed facilities.

Frank Wu, Regional Head of Structured Commodity Trade Finance – Asia Pacific, Global Transaction Banking at Deutsche Bank said: “We are delighted to have arranged three pre-payment structures for Tangsteel over the past 18 months. Both Tangsteel and Duferco are world-class companies in the steel industry and have long-standing relationships with Deutsche Bank. The overwhelming market response to this transaction clearly demonstrates the strong interest in this type of innovative structured trade financing solutions.”

Yidong Li, Vice President of Tangsteel said, “We are pleased with the continued funding support we have received from a syndicate of banks led by Deutsche Bank, totalling USD1.3 billion, especially given the recent global economic conditions. We are committed to building on our success in the steel business and we look forward to continuing to work with Duferco, as well as this group of lending banks.”

Thomas Patrick, Chief Financial Officer of Duferco International Trading Holding S.A., added: “Our relationship with Tangsteel is expanding rapidly and the pre-payment financing facilities we have arranged together with Deutsche Bank are a clear example of this dynamic growth. Deal subscriptions have come from select relationship banks, and as such, we have been working with a strong syndicate of banks having a good understanding of both our relationship with Tangsteel and our business model.”          

Most recent episodes

The Future of ESG in Treasury

In this podcast, Melissa Moi, Peter Jameson and Venkat ES from Bank of America join TMI’s Eleanor Hill to determine where the ESG journey is heading next. Our expert panel consider how changing regulation, technology solutions and metrics including ESG KPIs...


HSBC’s Sibos Spotlight: Investing in the Future – from Diversity to Green Deposits

In the final instalment of HSBC’s Sibos Spotlight, Eleanor Hill (TMI) invites Nadine Lagarmitte and Suraj Kalati (HSBC) to consider how corporates’ attitudes to...


HSBC’s Sibos Spotlight: The ESG Landscape – what every treasurer needs to know

In the third edition of HSBC’s Sibos Spotlight Podcast series, TMI’s Eleanor Hill invites Farnam Bidgoli (HSBC) to provide an in-depth overview of the current ESG...


The Path to Transformational Global Cash Visibility

Davina Bradley (CEVA Logistics) and Conor Deegan (CashAnalytics) join TMI’s Eleanor Hill to explore how treasurers can transform their cash visibility and forecasting within their business in a matter of weeks using a...


HSBC’s Sibos Spotlight: Embedding ESG in Trade and Supply Chains

In the second podcast from HSBC’s Sibos Spotlight series, TMI’s Eleanor Hill speaks to Surath Sengupta (HSBC) about embedding ESG into trade and supply chains....


Lost in Transaction: Overcoming Payments Pitfalls

From simple errors to duplicates, fraud and sanctions violations, there are a number of areas where payments can go wrong – especially in the real-time environment. In this podcast, TMI speaks to Andrew Ferrao...


HSBC's Sibos Spotlight: Central Bank Digital Currencies

The first edition of HSBC’s Sibos Spotlight series sees TMI’s Eleanor Hill joined by Mark Williamson and James Pomeroy (HSBC) to discuss the hot topic of Central Bank Digital Currencies (CBDCs). Our guests discuss...


Payments Vision 2025: The Inside Track

Wim Grosemans, Steven Lenaerts (BNP Paribas) and Wim Raymaekers (SWIFT) join TMI’s Eleanor Hill to outline their vision for the payments landscape in 2025. Our guests consider how recent developments such as instant...


Stepping Out from the Shadows

“Treasurers needs to step out of the shadows and into the sunshine in terms of their strategic contribution.” claims Zitah McMillan, Co-Founder and CEO, Predictive Black. In this podcast, hosted by TMI’s Eleanor Hill, our guest declares that the...


Why the ‘One Size Fits All’ Approach is Outdated - A Cash Segmentation Treasury Masterclass

With the ongoing low interest-rate environment and increasing regulatory change, it’s more important than ever for treasurers...