China Development Bank is seeking a US$400 million three-year term loan for working capital, according to Reuters.
Bank of Tokyo-Mitsubishi UFJ is the mandated lead arranger and the MLA has invited eight to 10 banks to join the syndicated loan.
The facility is offering a margin of 180bp over Libor and a 15bp participation fee, sources said.
The 180bp margin, however, is not enough to meet many invited lenders' costs especially for an onshore facility, according to sources.
"It is not market price, especially when every bank has a tight credit limit these days," said an invited banker who will not join the deal because of the tight pricing.
Another source added, "We have been approached but the margin is too low for us to join."
Sources familiar with the deal said the loan could be downsized due to lack of market appetite.
Recent onshore foreign currency deals were priced in the 400s.
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