July 03, 2006
Bayer successfully syndicates a EUR 610 million equivalent credit facility in China
Long-term credit facility available in Renminbi or U.S. dollars/ Syndication significantly oversubscribedLeverkusen - Bayer has successfully secured a RMB 6.1 billion credit line
(equivalent to USD 760 million / EUR 610 million) in China. The syndication,
lead-managed by China Construction Bank, HSBC, Industrial and Commercial Bank
of China, and Standard Chartered Bank, was significantly oversubscribed. The
credit facility serves to finance a world-scale polyurethanes production plant
of Bayer MaterialScience at the Caojing site. The production unit for MDI, a
raw material for polyurethane foam, is part of an investment project at this
site with a total planned volume of some USD 1.8 billion through 2009.
The credit facility has a term of 10 years and may be drawn either in U.S.
dollars or in the Chinese currency Renminbi. The interest rate is 30 basis
points above Libor for U.S. dollar drawings, or 90 percent of the applicable
base interest rate of the Chinese central bank for drawings in Renminbi. The
commitment fee is 8 basis points per annum.