One of South Africa's biggest financial institutions is borrowing $1bn from a group of Chinese banks, in a move which reflects the scarcity of credit in traditional capital markets and growing links between South Africa and the bigger emerging economies.

Standard Bank, which sold 20 per cent of its equity to Industrial and Commercial Bank of China two years ago, said it was the first time that it had tapped the Asian market. “There is absolutely no way we could raise this kind of money from western banks,” said Jacko Maree, Standard Bank's chief executive. “You could not do it at any price.”

Standard, like other South African banks, has increasingly been focusing its business on Asia and other emerging markets in the wake of last year's financial crisis. Although markets are becoming more liquid in the wake of the reduction of interest rates to record lows, banks are reluctant to offer longer-term financing.