HONG KONG/SINGAPORE, April 2 Three banks are
providing a fully underwritten $4.95 billion bridge loan to
Singapore's Oversea-Chinese Banking Corp Ltd to fund its offer
to buy Hong Kong-based Wing Hang Bank, according to sources
close to the matter.
Bank of America Merrill Lynch, HSBC and J.P. Morgan are
sharing equal underwriting of the loan, the sources said, which
will have a 12-month tenor.
The size of the loan, which is the same as OCBC's
all-cash offer for Wing Hang, shows how frothy lending
markets have become, with heaps of cheap money sloshing around
the region and paying for large acquisitions.
BofA, HSBC, and J.P. Morgan did
not immediately return calls seeking comment. OCBC did not
immediately return a call seeking comment.
(Reporting by Prakash Chakravarti of IFR/LPC and Saeed Azhar;
Editing by Michael Flaherty and Ryan Woo)