Dealogic Asia Pacific syndicated lending wrap - January 13

A review of this week''s activity in the syndicated lending market.

Australia

Bank presentations were held on Tuesday for Australian Gas Light's A$2.4 billion multi-tranche financing. Commonwealth Bank of Australia and Goldman Sachs JBWere are the mandated arrangers. The facility comprises a A$500 million one year term loan, A$750 million three and five year portions and a A$400 million three year revolving credit.

Banks have been invited to join on three levels. Banks receive the title of arranger for commitments of A$200 million, co-arranger for A$150 million to A$199 million or lead manager for A$125 million to A$149 million.

Proceeds are to refinance the A$2 billion one year bridge loan that was provided by the lead banks in November last year. The facility was to support the borrower's acquisition of Southern Hydro's renewable energy power generation assets from Meridian Energy.

An A$576 million facility for Macquarie Media Group was launched into sub-underwriting on Tuesday. DBS Bank and ING Bank are leading the deal. The deal was launched to a select number of banks and proceeds are to support the acquisition of a stake in Taiwan Broadband Communications from Carlyle Group.

China

Mandated arrangers DBS Bank and HSBC launched a $128.5 million equivalent financing for Far Eastern Textiles into senior syndication on Tuesday. The borrowing entities are PRC subsidiaries Far Eastern Industries (Wuxi) and Oriental Textile Industries (Suzhou).

Far Eastern Industries (Wuxi)'s $58.5 million equivalent fundraising comprises a $30 million five year term loan, a Rmb178 million five year portion and a Rmb52.5 million revolving credit. The margin is 85bp over Libor for the US dollar tranche and 90% of the PBOC rate for the renminbi facilities.

Oriental Textile Industries (Suzhou)'s $70 million five year loan offers a spread of 80bp over Libor. The average life for the term loan is 4.175 years.

Banks have been invited to join with a take-and-hold commitment of $18 million or above for 20bp flat. Proceeds are for capital expenditure requirements.

Far Eastern Textile is a producer of polyester and related products and its Bermuda incorporated company Oriental Textiles Holding is providing a guarantee. Banks have until the second week of February to respond.

The HK$2.5 billion five year term loan for Hong Kong & China Gas is oversubscribed and the amount likely to be increased. Citigroup is arranging the facility.

Around 10 banks have so far joined with up to two more investors in the final stages of approval. The deal offers a top level all-in of 21.5bp over Hibor.

Shandong Chenming Paper Holdings' $80 million three year fundraising is set to complete syndication next week. Sumitomo Mitsui Banking Corp is the sole mandated arranger. Commitments from six banks have so far been received with a handful expected to revert in the coming week. The loan carries an all-in yield of around 107.5bp over Libor.

Hong Kong

Syndication of Bestory's $120 million five year term loan has been completed and the amount may be decreased as the borrower may not require the full amount of funds raised. DBS Bank is leading the deal and parent company CNPC (Hong Kong) is the guarantor.

Allocations are being finalised and signing is slated for early February.

DBS Bank has closed syndication of Eva Precision Industrial Holdings' HK$120 million dual tranche fundraising. Allocations are pending and the deal is scheduled to sign by the end of the month.

Kerry Properties is now seeking at least HK$6 billion from the market for its self-arranged loan. The property developer originally sought HK$4 billion from banks.

Banks are in the process of submitting their commitments and an arranger group should be finalised soon.

The borrower successfully raised HK$7 billion in June 2004 via a five year financing that was arranged by a 16 strong bank group. All-in pricing was 41bp over Hibor.

Allocations for Lloyd Triestino's Eu30 million ship financing will be finalised shortly. A total of 11 banks joined mandated arranger SG Asia.

Arrangers include Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi, HVB, Maybank, Mizuho Corporate Bank, Oversea-Chinese Banking Corp, Sanpaolo IMI and UniCredito Italiano. United Overseas Bank joined as a manager.

The facility received an enthusiastic response from the market and was three times oversubscribed. Bank commitments will be scaled back.

Mandated arrangers HSBC and Rabobank International will launch the $120 million five year term facility for Pacific Andes International Holdings into syndication next month. The whitefish supplier will use the proceeds to support its expansion in China.

Mandated arrangers Bank of Nova Scotia, Calyon, Standard Chartered Bank and Sumitomo Mitsui Banking Corp launched the HK$1.9 billion five year dual tranche facility for Prosperity Real Estate Investment Trust into general syndication this week. The facility was pre-funded by the banks in November last year.

The loan comprises a HK$1.77 billion term facility and a HK$130 million revolving credit. The margin is 49bp over Hibor.

Banks have been invited to join on two levels. Arrangers lending HK$150 million or above earn a management fee of 38bp and lead managers committing HK$75 million to HK$149 million gain 28.5bp.

Banks have until January 27 to respond.

The HK$450 million three year financing for Tack Fat Group International is progressing in syndication. Fubon Commercial Bank, Rabobank International and Sumitomo Mitsui Banking Corp are leading the facility.

A few verbal commitments have already been received with more to come in by the end of next week. The deal was launched into syndication in late December, offering a margin of 65bp over Hibor.

Fees to the market are on three levels. Co-arrangers providing HK$50 million or above receive a front-end fee of 48bp, lead managers contributing HK$40 million to HK$45 million gain 44bp and co-lead managers lending HK$25 million to HK$35 million earn 40bp.

The manufacturer of clothing and apparel will use the funds to refinance an existing HK$400 million loan that was signed in March 2004 and led by Sumitomo Mitsui Banking Corp. That deal paid an all-in of 155bp over Hibor, well outside the 83.1bp offered in the current transaction.

Financial close should be reached in the coming week.

Indonesia

Bakrie Sumatera Plantation's $69 million three year dual tranche facility should complete syndication today (Friday). RZB-Austria is arranging the loan.

Barclays Capital and ICICI Bank have so far joined at the top level as mandated lead arrangers while WestLB, RHB Bank and Moscow Narodny Bank are also participating in the financing. One more investor is expected to revert by the end of the week.

Philippines

The $50 million two year loan for Development Bank of the Philippines is in the market via mandated lead arrangers Calyon, Natexis Banques Populaires, RZB-Austria and DZ Bank. The deal features a one year put option.

The margin is 55bp over Libor and banks have been invited to join on three levels. Co-arrangers providing $10 million or above receive a management fee of 19bp, lead managers contributing $5 million to $7.5 million earn 17bp and senior managers lending $3 million to $4 million gain 16bp.

The bank successfully raised $70 million in January last year via mandated arrangers ING Bank, Mizuho Corporate Bank and Standard Chartered Bank. The three year loan carried an all-in yield of around 238.3bp over Libor, well outside the 74bp offered in the latest transaction.

Proceeds are for on-lending purposes and banks have until January 25 to respond.

Mandated arrangers HSBC, Banco de Oro and Development Bank of the Philippines are syndicating the $215 million one year bridge facility for NutriAsia Pacific to a select number of banks. A number of domestic institutions have been approached as well as a handful of foreign institutions.

The loan offers a margin of 200bp over Libor. Proceeds are to support the acquisition of Del Monte Pacific.

Responses are due by the end of the month.

Singapore

The S$300 million five year facility for CDL Properties has closed oversubscribed and will sign next week. DBS Bank, HSBC and NordLB are leading the deal.

The borrower is considering an increase to the loan amount. Proceeds are to refinance a S$450 million deal that was completed in January 2001.

South Korea

Asiana Airlines has secured a $49.2 million seven year aircraft financing via two banks. Mandated arranger Korea Development Bank lent $29.2 million while co-arranger Hana Bank held $20 million.

Pricing is 240bp over Libor.

The $205 million ship financing for Hanjin Shipping should reach financial close shortly. BNP Paribas, ING Bank and Sumitomo Mitsui Banking Corp are the mandated arrangers.

The facility is already oversubscribed with four commitments so far received. More banks are expected to revert next week.

Proceeds are to finance the purchase of new container ships.

Mandated arrangers Korea Development Bank, BNP Paribas, Commerzbank, Nordea Bank and SG Asia closed syndication of Korea Gas' $438.1 million multi-tranche financing on Wednesday. Allocations are being finalised.

Meanwhile, the $500 million dual tranche loan that is being syndicated by Bank of Nova Scotia, Citigroup, ING Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank is nearing financial close. Around five banks have so far joined.

Taiwan

Chi Mei Optoelectronics' NT$40 billion equivalent fundraising has so far secured four commitments in syndication. A 16 strong bank group is arranging the facility.

Participating banks include Taishin International Bank, Farmers Bank of China, Bank of Overseas Chinese and Tainan Business Bank. The mandated arrangers are Bank of Taiwan, BNP Paribas, Calyon, Cathay United Bank, Chang Hwa Commercial Bank, Chiao Tung Bank, China Development Industrial Bank, Chinatrust Commercial Bank, First Commercial Bank, Fuhwa Bank, HSBC, Hua Nan Commercial Bank, Land Bank of Taiwan, Ta Chong Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.

The loan is scheduled to complete syndication next week with around 40 banks expected to take part in the transaction.

Mandated arranger Chinatrust Commercial Bank is set to launch a NT$2.2 billion five year loan for Chipbond Technology into syndication shortly. The semiconductor producer will use the funds for capital expenditure requirements.

The NT$5 billion 12 year aircraft financing for China Airlines will close syndication next Friday. Far Eastern International Bank, International Commercial Bank of China and Taipei Fubon Commercial Bank are the mandated arrangers.

Six banks have so far joined with more to revert in the coming week. Proceeds are to fund the purchase of a new Boeing 747-400 aircraft.

ChipMOS Technologies has successfully raised NT$6 billion from the market via a syndicate of 10 banks. Signing was held on January 10.

Mandated arrangers Hsinchu International Bank, Taishin International Bank and Taiwan Cooperative Bank held NT$800 million each, Bank of Taiwan, Chang Hwa Commercial Bank, Fuhwa Bank and Land Bank of Taiwan lent NT$600 million apiece while First Commercial Bank and Hua Nan Commercial Bank each took NT$500 million. Farmers Bank of China joined as a lead manager with a commitment of NT$200 million.

The $72 million three year term loan for HannStar Board Technology (Jiang Yin) was launched on January 4. ANZ Investment Bank, BNP Paribas, DBS Bank, HSBC and ING Bank are leading the deal.

The loan features a spread of 62.5bp over three or six month Libor and fees to the market are on three levels. Co-arrangers lending $8 million or above earn 19.13bp flat, lead managers contributing $5 million to $7 million get 12.75bp and managers providing $3 million to $4 million receive 6.38bp.

There is also a commitment fee of 20bp. Proceeds are to refinance a $42 million three year loan that was signed in January last year, repay existing debt and provide for working capital requirements.

Mandated arranger International Commercial Bank of China will re-launch Radium Life Tech's NT$10.1 billion dual tranche financing due to changes in the building project above the Xindian MRT station. The five year loan is split into NT$9.8 billion and NT$300 million facilities.

Tatung has mandated Taiwan Cooperative Bank to lead arrange a NT$2 billion five year dual tranche financing. In the event of an oversubscription the amount can be increased to NT$3 billion.

The deal is divided into a NT$1.2 billion term loan and an NT$800 million note issuance facility. The term loan offers a margin of 54bp over the CP primary rate while the NIF pays 52.5bp.

The electronics manufacturer successfully raised NT$4 billion in May last year via First Commercial Bank and Taishin International Bank. The five year loan carried a margin of 51.5bp.

Proceeds are for working capital purposes and the deal will be launched into syndication after the lunar new year.

Thailand

A $75 million five year credit for Aromatics (Thailand) is nearing financial close. Mizuho Corporate Bank is the mandated arranger.

India

Andhra Bank is tapping the market for a $75 million 364 day refinancing. The deal will roll over a $75 million credit that was signed in February last year and arranged by Banc of America Securities Asia, Natexis Banques Populaires and RZB-Austria.

The 364 day loan featured all-in pricing of 44bp over Libor.

Proposals were due on January 11 for ICICI Bank's $250 million refinancing exercise. The Indian bank is seeking to refinance the $250 million 364 day loan that was taken out by its Bahrain branch in March last year.

ABN AMRO, Banc of America Securities Asia, Calyon, DBS Bank, DZ Bank, Natexis Banques Populaires, RZB-Austria and Standard Chartered arranged the previous financing. The loan offered an all-in of 33bp over Libor to top level banks.

The $69.6 million equivalent Japanese yen facility for IDBI Bank was signed on Monday. Calyon, Citigroup, DBS Bank, Mizuho Corporate Bank and Standard Chartered Bank provided the funds on a club basis.

A consortium of banks have been short-listed to lead arrange a $1.5 billion financing for Reliance Petroleum. The loan will comprise seven and 10 year facilities.

Union Bank of India inked its $100 million 364 day credit last Friday with a syndicate of 13 banks. Mandated lead arrangers DBS Bank and RZB-Austria held $10 million each while Banc of America Securities Asia, Bank of Tokyo-Mitsubishi, Calyon, Lloyds TSB Bank, Standard Chartered Bank and United Overseas Bank took $9 million apiece.

Lead arrangers are Banca Nazionale del Lavoro (Hong Kong) and Bank Austria Creditanstalt with tickets of $8 million each. Banca Monte dei Paschi di Siena joined as an arranger with a commitment of $5 million.

Export-Import Bank of the Republic of China and Sampo Bank took the title of senior manager with tickets of $3 million and $2 million respectively.

United Phosphorus' ¥8.8 billion dual tranche loan should reach financial close shortly. ABN AMRO, Barclays Capital and Bank of India are leading the deal.

State Bank of India, Commonwealth Bank of Australia and United Overseas Bank have committed ¥2 billion apiece, UCO Bank and Indian Bank have come on board for ¥600 million each and Chiao Tung Bank is lending ¥400 million. Up to seven more institutions are processing approvals.

Further commitments are expected by the end of next week with signing targeted to take place by the end of the month.