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Subject: ChemChina has revealed a new line of backers for its $44bn buyout of Swiss agribusiness group
Excerpt: English text from the archived bilingual edition · Chinese edition
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ChemChina has revealed a new line of backers for its $44bn buyout of Swiss agribusiness group
Syngenta, with investors including Morgan Stanley and Bank of China buying a total of $20bn in perpetual bonds and preference shares in the deal
The refinancing of the Syngenta acquisition comes as bankers in Asia say they are preparing for another merger: that of ChemChina and its rival Sinochem, in what is expected to become the world’s largest chemicals group sometime next year
A Securities and Exchange Commission filing showed that Bank of China has now become the largest financier of the Syngenta buyout, with the bank purchasing $10bn in perpetual bonds from ChemChina. Perpetual bonds are a hybrid financing instrument that will probably be treated partly as equity on ChemChina’s balance sheet
ChemChina’s equity stake in the deal — the largest outbound acquisition for a Chinese group — remained at $5bn, according to the filings
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