2 1 Shi Ji Jing Ji Bao Dao·2025-08-26 12:18Core Viewpoint - The establishment of the Bay Area Cross-Border M&A Alliance in Shenzhen marks a significant development in providing cross-border M&A syndication services for Bay Area enterprises, with a total of 10 billion yuan in syndicate M&A credit approved on the same day [1][2]. Group 1: Alliance Formation and Structure - The Bay Area Cross-Border M&A Alliance was formed with a "bank-led" characteristic, with East Asia Bank (China) serving as the chairman and 8 banks signing a 10 billion yuan syndicate M&A credit agreement [3]. - The alliance includes both foreign and domestic banks, with 4 foreign banks and 4 domestic banks participating in the syndicate [3]. - The alliance has over 50 member institutions, including banks, securities companies, insurance firms, asset management companies, venture capital, and intermediary service organizations [4]. Group 2: Initial Projects and Participants - The first batch of signed enterprises includes listed companies such as Shengtun Mining, Aorijin, Zhuhai Huafa, and China Water Affairs, indicating a focus on companies with established market presence [5][6]. - The sectors involved in the initial projects include non-ferrous metals, urban water supply, aquaculture feed, and electronic information [7]. Group 3: Financing Mechanism - The financing for the M&A projects utilizes a syndicate loan model, which allows multiple banks to jointly provide credit, typically resulting in larger amounts and longer terms [8]. - Specific projects include Aorijin's 570 million yuan equity acquisition loan for a project in Saudi Arabia and Shengtun Mining's 9700 million USD equity acquisition loan for an Indonesian nickel mining company [8][9]. Group 4: Market Context and Policy Support - The global M&A market is showing signs of recovery, with a 27% year-on-year increase in M&A activity since 2025, driven by cross-border and large-scale transactions [11]. - Recent policy changes from the National Financial Regulatory Administration have relaxed restrictions on commercial bank M&A loans, increasing the maximum loan-to-value ratios and extending loan terms [12].