China's best corporate and investment bank 2017: China Citic Bank
China Citic Bank
China Citic Bank has grown quietly into its role as one of China’s most systemically important corporate and investment banks. It banks many of the mainland’s largest domestic and most globally acquisitive corporates, and is an increasingly weighty presence in the global capital markets.
Over the last year, it has played a big role in many of China Inc’s most striking global capital-raising events, starting with the $12.7 billion financial package – a blend of term loans and revolving credit – secured by ChemChina to complete its takeover of Swiss pesticides-maker Syngenta. ChemChina tapped 16 banks for funding, with Citic chosen as global coordinator and lead arranger on the deal.
The decision by Hong Kong-listed car dealership Baoxin Auto Group to more than double the offshore tranche to $763.4 million from $300 million of a three-year loan facility, following an overwhelming response from lenders, also stands out. Citic acted as one of three lead arrangers on the deal, alongside Bank of China and Tai Fung Bank.
The lender is increasingly vital to corporate China’s bigger outbound M&A deals, as well as being a big player in the onshore debt markets, underwriting Rmb377.4 billion ($55 billion) worth of prints in 2016, a year-on-year rise of 16%. It underwrote 391 publicly offered bonds worth Rmb344 billion over the same period, the top-ranked among all onshore joint-stock banks.
Citic is also a leading provider of cross-border financing and foreign exchange services, with income from its FX division jumping 25% in 2016.