Chinese road construction and investment company Jiangxi Provincial Expressway has signed a Rmb600mn (US$96.8mn) syndicated facility from five foreign banks – its first loan sourced outside of the domestic market.

The one-year renminbi financing, which will be used for working capital purposes, was arranged by DBS Bank China as sole mandated lead arranger, bookrunner and facility agent. Other lenders include Bank of Tokyo-Mitsubishi, Dah Sing Bank, Chang Hwa Commercial Bank, and Banca Monte Dei Paschi Di Siena.

The loan marks the first time that Jiangxi Provincial Expressway has raised funds through syndication via foreign banks, and is Jiangxi Province’s largest syndicated loan arranged by a foreign bank this year.

Launched in January 2015, it was oversubscribed by 50%, increasing from the initial Rmb400mn to Rmb600mn at closing.

Que Yong, chief financial officer of Jiangxi Provincial Expressway, says: “This deal is of great significance to Jiangxi Provincial Expressway Investment Group in expanding new channels of financing. The success of obtaining a syndicated loan via foreign banks is critical to the access of offshore financing, enabling the group to leverage debt financing to internationalise its operations.”