The China Development Bank signed a contract to extend US$240 million to CITIC Guo’an Group, the first such case since the China Banking Regulatory Commission (CBRC) last month allowed banks to issue loans to companies seeking to make acquisitions, state media reported. CITIC Guo’an will use the loan to increase its shareholding in non-ferrous metal processing company Baiyin Group to 45%. CITIC Guo’an, a subsidiary of CITIC Group, invests in information technology, high-tech, natural resources development and real estate. The CBRC allowed both domestic and foreign banks to provide acquisition loans if the lenders met certain conditions, including a capital adequacy ratio above 10% and a loan loss provision of more than 1% of the total loan.
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