Grandway Advised Alliance Steel (M) Sdn Bhd on RMB Multi-Billion Cross-Border Syndicated Loan Financing

Grandway was engaged by Alliance Steel (M) Sdn Bhd (“Alliance”) as its PRC legal consultant to obtain a RMB multi-billion syndicated loan financing for its project with an annual capacity of 3.5 million tons of steel in the Malaysia-China Kuantan Industrial Park. Alliance has successfully entered into a syndicated loan agreement with a syndicate led by China Construction Bank Corporation Guangxi Zhuang Autonomous Region Branch and successfully obtained the financing.

Established in April, 2014, Alliance is the first modernized full-process integrated steel plant invested by mainland China overseas. It is now a steel complex with more sophisticated technology and equipment, and more complete product varieties and specifications in the same industry in Malaysia, as well as one of the most competitive steel plants in Southeast Asia.

Alliance Steel Project is an innovative exploration of capacity cooperation between China and Malaysia in “One Belt, One Road” and has a significant demonstration effect on promoting bilateral economic trade between China and Malaysia. The project presents typical features of the complex cross-border financing of “One Belt, One Road”, with innovative breakthroughs in many aspects, especially the application of Chinese law to the syndicated loan, instead of the traditional English law.