Big construction loan in China; transport loans slow

Shanghai Metro Line 15 Development, Mumbai International Airport and TPC Commercial/TPC Hotel feature in Dealogic's roundup of loans activity in Asia for June 9-15.

The largest Construction sector deal signed in China in 2017 YTD

  • Shanghai Metro Line 15 Development has signed a RMB 23.2 billion facility through sole mandated lead arranger Bank of China. Syndication saw Agricultural Bank of China, Bank of Communications, Bank of Shanghai, China Construction Bank, China Development Bank, China Minsheng Banking Corp, Industrial & Commercial Bank of China, and Shanghai Pudong Development Bank join as participants. Proceeds are to support the construction of Shanghai Metro Line 15.
  •  This is the largest Construction sector deal signed in China in 2017 YTD, followed by Wenzhou Oujiang Estuary Bridge’s $799 million fundraising in January 2017 and Henan Expressway Development’s $480 million facility in February 2017.
  •  In China, syndicated loan volume totals $60.2 billion via 196 deals so far this year, down 25% year-on-year.

Asia Pacific (ex Japan) Transportation sector loan volume down 35% YoY

  • Mumbai International Airport has signed an INR 91.3 billion facility. The loan is split into an INR8.3 billion bilateral loan and an INR83.0 billion syndicated facility. The latter portion was concluded through sole bookrunner and mandated lead arranger SBI Capital Markets. Syndication saw Aditya Birla Finance, L&T Finance, and L&T Infrastructure Finance join as participants. Proceeds are to repay existing debt incurred from previous projects.
  • In Asia Pacific (ex Japan), Transportation sector loan volume stands at $19.6 billion in 2017 YTD, down 35% from $30.3 billion borrowed in the same period of 2016 and marking the lowest YTD level since 2013 ($15.1 billion).
  •  In Asia Pacific (ex Japan), syndicated loan volume totals $162.3 billion via 535 deals, drop 27% year-on-year from $222.8 billion in 2015 YTD via 645 deals.

Real estate sector leads the Southeast Asia syndicated loan volume in 2017 YTD

  • TPC Commercial and TPC Hotel has signed an S$1.8 billion facility through joint mandated lead arrangers DBS, OCBC, and UOB on a club basis. Proceeds are to refinance an existing facility signed in May 2012 and for capital expenditure purposes.
  • This is the largest Real Estate sector deal signed in Southeast Asia so far this year, followed by TCC Hotel Asset Management’s $725 million facility signed in May 2017 and Hong Fok Land’s $714 million fundraising in February 2017.
  • Real Estate sector leads the Southeast Asia syndicated loan volume with $6.4 billion signed in 2017 YTD, accounting for 22% of total Southeast Asia syndicated loan volume.
¬ Haymarket Media Limited. All rights reserved.