China Copper Smelter Halts Syndication of $300 Million Loan Deal

(Bloomberg) -- A copper smelter based in China’s Shandong province has halted syndication of a $300 million one-year facility just two weeks into its launch to the market, according to people familiar with the matter.

Potential lenders were initially invited to commit by mid-February 2020 to the structured pre-financing facility that was launched on Nov. 28 for Dongying Fangyuan Nonferrous Metals Co. and affiliate Dongying Lufang Metals Material Co., said the people, who aren’t authorized to speak publicly and asked not to be identified.

A representative at Dongying Fangyuan said he had no knowledge of the issue and couldn’t immediately comment when reached by Bloomberg. An Amsterdam-based representative of ABN Amro Bank NV, the mandated lead manager and bookrunner, didn’t immediately reply to an email seeking comment outside office hours.

Chinese copper smelters have been facing weaker margins just as an economic slowdown and trade tensions with the U.S. darken the outlook for refined metal demand. Concerns have also emerged over the recent credit stress that has engulfed Shandong province that may spread to other firms there.

©2019 Bloomberg L.P.

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