The mystery lender who financed Thai billionaire Dhanin Chearavanont's $9.4 billion acquisition of HSBC's 15.6 stake in Ping An Insurance Group Co.,China's second largest insurer, had been named.
According to sources, UBS offered the bridge loan, the fourth largest in the region, using a complex financing package that only few people knew about. The Swiss bank's financial backing came after the main lender of a Thai conglomerate backed out at the last minute.
While the companies did not disclose the bank's role in the transaction, sources said that UBS AG backed the deal. For this transaction, UBS is expected to earn about $100 million in arranging fees alone.
For the help it provided, UBS is set to earn another milestone. People familiar with the matter say the bank is expected to reap, over time, about $100 million in arranging fees alone, a massive amount for one bank on a single deal.
According to sources, the Dhanin deal showed that the investment bank favors high margin transactions than standard deals. For loyal, fee-paying clients, the bank constructs deals for them that may be higher in risk, but also higher in reward.
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