IFC sets a new benchmark in HK dollar financing

A HK$17.4 billion fundraising for IFC Development Corp Finance was signed on March 12 via a syndicate of 33 banks, marking the largest ever Hong Kong dollar syndicated loan on record. The loan financing met with an overwhelming response from the market and the amount was increased from HK$14.8 billion.

The five-year loan was bookrun by 11 banks û Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Citigroup, DBS Bank, Fortis Bank, HSBC, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. The top heavy mandated lead arranger group comprised a total of 19 banks.

The facility surpasses Henderson LandÆs HK$13.4 billion loan signed in July last year that saw participation from 24 banks. That deal was led by BNP Paribas, Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, HSBC, Mizuho Corporate Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

IFCÆs loan was offered to banks on three tiers. Co-arrangers lending HK$200 million or more receive an all-in yield of 42bp over Hibor, senior lead managers contributing HK$100 million to HK$190 million earn 41.5bp and lead managers providing HK$50 million to HK$90 million gain 41bp. The deal carries a margin of 37bp, compared to the 25bp offered in Henderson LandÆs transaction.

The loan is guaranteed by IFC Development and proceeds are to provide for general corporate requirements.