Deutsche Bank opens new German loan market for China

Deutsche Bank recently closed Germany’s first ever ‘Schuldschein’ loan to a Chinese entity.

In this transaction, Deutsche Bank helped Chinese subway operator Tianjin Rail raise 200 million euros with a tenor of 10 years, in its inaugural Schuldschein financing in the German domestic loan market. Tianjin Rail Transit Group is the subway operator in the metropolitan area of Tianjin, a city in north-eastern China near Beijing.

This landmark transaction is the first euro-denominated assignable loan for Tianjin Rail, fully underwritten by Deutsche Bank Fixed Income and Currencies. It highlights Deutsche Bank’s expertise in executing cross-border transactions, providing balance sheet to corporate issuers in international funding situations, and creating opportunities for our institutional investors.

Deutsche Bank’s Co-Head of Private Debt Syndicate Konstantin Kraus said: “Teamwork between Deutsche Bank China and Europe, coupled with our in depth client knowledge, enabled us to quickly develop a solution that met the client’s needs and opened a new market for Chinese government-linked borrowers.”

Sam Fischer, Head of Onshore Debt Capital Markets at Deutsche Bank in Beijing said: “This transaction is another milestone for cross-border diversification and maturity extension for Chinese issuers.”

Hunter Xiong, Head of Deutsche Bank’s Belt & Road Initiative Office in Beijing, said: “This transaction opens a new foreign currency funding source for Chinese sponsors in long-term asset sectors like infrastructure and energy. We expect Schuldschein loans to become a valuable alternative international financing option for more Chinese sponsors, particularly for Belt & Road Initiative businesses.”