ChemChina receives interest in Syngenta equity financing from foreign groups – sources

13 September 2016 - 12:00 am UTC

09 Sep 2016 – Syngenta [VTX:SYNN] suitor ChemChina has received expressions of interest from international investors looking to participate in equity financing alongside domestic investors, according to a source familiar with the deal and a person briefed.

Chemchina is putting together USD 50bn in financing, with CITIC coordinating a USD 12.5bn loan backed by Chemchina assets and HSBC putting together USD 12.5bn against Syngenta assets. The remaining USD 25bn will be equity mostly from Chinese government vehicles, as previously reported.

It is common in Switzerland for large companies to arrange debt when raising acquisition financing, later replacing with equity, the first source said, as parties need to demonstrate certainty of funds from the day of the announcement to the Swiss takeover board (STOB).