HONG KONG/SINGAPORE, April 2 (Reuters) - 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)