China loan volume down; Big India construction loan

Hubei United Development Investment Group; UltraTech Cement and Gunvor Singapore feature in Dealogic's roundup of loans activity in Asia for June 30 to July 6.

China loan volume down 21% YoY

  • Hubei United Development Investment Group has signed a RMB4.7 billion facility through sole mandated lead arranger China Development Bank. Syndication saw Agricultural Bank of China, Bank of Communications, China Construction Bank, China Everbright Bank, and China Guangfa Bank joined as participants. Proceeds are to support the construction of Ezhou-Xianning expressway in Hubei Province, China.
  • China syndicated loan volume totals $73.9 billion via 216 deals in 2017 YTD, down 21% from $93.7 billion borrowed in the same period of time of 2016.
  •  In Asia Pacific (ex Japan), loan volume totals $214.8 billion via 671 deals in 2017 YTD, down 18% from $261.7 billion borrowed in the same period of time of 2016 and marking the lowest YTD level since 2012 ($187.6 billion).

Construction is the third largest sector for India loan volume in 2017 YTD

  • UltraTech Cement has signed an INR111.9 billion facility through sole bookrunner and mandated lead arranger ICICI Bank. Syndication saw AXIS Bank, Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, IndusInd Bank, Industrial Development Bank of India, Industrial Finance Corp of India, Jammu & Kashmir Bank, Karnataka Bank, Karur Vysya Bank, L&T Finance, Lakshimi Vilas Bank, Life Insurance Corp of India, Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, South Indian Bank, Standard Chartered Bank, State Bank of India, Syndicate Bank, UCO Bank, United Bank of India, and Yes Bank join as participants. Proceeds are to support the $2.4 billion acquisition of Jaiprakash Associates’s cement business, including integrated cement plants and five grinding units, with total capacity of 21 million tons. The plants are spread across the Indian states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.
  • This is the third largest deal signed in India so far this year, after HPCL-Mittal Energy’s $2.1 billion facility signed in May 2017 and Reliance Industries’ $1.8 billion facility signed in March 2017.
  •  Construction is the third largest sector for India syndicated loan volume in 2017 YTD with $3.9 billion signed, accounting for 14% of total Indian loan volume.

Oil & Gas is the third largest sector for Southeast Asia loan volume in 2017 YTD

  • Gunvor Singapore has signed a $1.1 billion facility through joint bookrunners and mandated lead arrangers Banque Internationale de Commerce, Cooperatieve Rabobank Rotterdam, DBS, ING Bank, Malayan Banking Corp, National Bank of Abu Dhabi, Natixis, and OCBC. Syndication saw ABN AMRO Bank, Arab Petroleum Investments Corp, CTBC Bank, Credit Agricole CIB, Emirates NBD, Mizuho Bank, Societe Generale, Sumitomo Mitsui Banking Corp, UBS, UOB, and UniCredit Bank join as mandated lead arrangers, while Bank Mandiri, Bank Negara Indonesia, Bank of Taiwan, China CITIC Bank International, Commercial Bank of Dubai, Commerzbank, E Sun Commercial Bank, First Commercial Bank,  FirstRand Bank, Hua Nan Commercial Bank, Korea Development Bank, Macquarie Bank, Mega International Commercial Bank, NEC Capital Solutions, National Bank of Fujairah, Sumitomo Mitsui Trust Bank, Taishin International Bank, Taiwan Cooperative Bank, and Union de Banques Arabes et Francaises came in as arrangers. Proceeds are to refinance existing facilities that are signed in May 2015 and May 2016 respectively, and for working capital purposes.
  • This is the third largest Oil & Gas sector loan signed in Southeast Asia so far this year, behind Trafigura’s $2.3 billion fundraising signed in March 2017 and Vitol Asia  and Vitol Finance’s $1.5 billion facility signed in June 2017.
  • Oil & Gas is the largest sector for Southeast Asia syndicated loan volume in 2017 YTD, with volume totaling $7.0 billion in 2017 YTD, accounting for 17% of the region’s total syndicated loan market.


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