Loan week, April 17-23

A roundup of the latest syndicated loan market news.


Australand has secured a A$350 million facility from three Australian banks to repay a A$563 million debt facility expiring in June 2009.

Meanwhile, A$100 million of a A$150 million unsecured debt coming due in 2009 have also been successfully renewed, while the balance A$50 million is still under discussion.

Except for the extensions, some of the covenants for the borrower's A$950 million multi-option facility have also been amended. The interest cover ratio has been reduced to two times from 2.5 times, while the gearing covenant has been decreased to 55% from 60%.

Banks are now putting together a two-month extension of Fisher & Paykel Appliances Holdings' A$80 million interim facility signed in March 2009, which will mature by the end of this month.

At the same time, banks are looking into a secured facility for the borrower to refinance its existing bank debt. The extension is expected to be finalised by the end of April.


Wuxi Construction Development Investment's Rmb700 million project financing has been completed via sole mandated lead arranger and bookrunner China Zheshang Bank.

The lead committed Rmb250 million, while participant Postal Savings Bank of China took Rmb330 million. Shenzhen Development Bank and Jiangsu Changjiang Commercial Bank held Rmb100 million and Rmb20 million apiece.

This is the first syndicated loan done by China Zheshang Bank. Proceeds are to support the Rmb1.1 billion Wuxi Xingguang Road Construction Project in Jiangsu Province, China.

South Korea

A $130 million offshore loan-style floating rate note for Korea Water Resources Corp was completed on a club basis on April 17 by BNP Paribas, Calyon and Standard Chartered Bank.

The leads provided $50 million apiece, except for Calyon which held a ticket of $30 million. The transaction is priced at 275bp over Libor and proceeds are for general corporate purposes.

Hong Kong

Yue Yuen Industrial Holding's $500 million-equivalent transferable dual-currency term loan was completed on a club basis on April 21 via a consortium of 14 mandated lead arrangers.

The three-year self-arranged club deal comprises a $371 million and a HK$1 billion portion priced at 165bp over Libor and Hibor respectively.

For the US dollar portion, Bank of China (Hong Kong), contributed $80 million, China Construction Bank (Hong Kong) $62 million, Taipei Fubon Commercial Bank (Hong Kong) $55 million, Hang Seng Bank $29 million and Bank of America-Merrill Lynch $25 million. These five banks were all coordinating arrangers.

Bank Sinopac, Cathay Bank (Hong Kong), Chinatrust Commercial Bank (Hong Kong), Oversea-Chinese Banking Corp (Hong Kong) and Yuanta Commercial Bank joined in with $21 million each, while DBS took $15 million.

On the Hong Kong dollar portion, DBS provided HK$351 million, Bank of Nova Scotia (Hong Kong) HK$296.4 million, Citi (Hong Kong) HK$195 million and CITIC Ka Wah Bank HK$163.8 million.

Proceeds are to refinance existing debt facilities of the company, including HK$2.1 billion worth of zero coupon convertible bonds with a put option that can be exercised on November 17, 2009; to partly refinance a $420 million syndicated loan due in mid 2010; and to provide for working capital requirements.


Kalyan Sangam Infratech's Rs2.3 billion loan has been inked via sole mandated lead arranger and bookrunner IDBI Bank.

Final allocations saw the bookrunner provide Rs650 million, while participant Bank of Baroda lent Rs600 million. Oriental Bank of Commerce and Corporation Bank gave Rs400 million apiece, while Union Bank of India ended up with Rs200 million.

Proceeds are for project financing purposes.

A Rs11.8 billion debt package for Mundra Port & Special Economic Zone was signed on April 18 via mandated lead arranger State Bank of India. 

Final allocations saw the lead arranger provide Rs3.9 billion, while participants Canara Bank and Punjab National Bank lent Rs2 billion apiece. Allahabad Bank and Bank of India gave Rs1.5 billion each, while Corporation Bank ended up with Rs990 million.

Proceeds are to fund a Rs12 billion construction project.


Mitsubishi Corp's $1 billion 364-day multi-currency revolver has been completed via sole bookrunner Citi.

Syndication saw Bank of Tokyo-Mitsubishi UFJ join in as mandated lead arranger. Bank of America-Merrill Lynch, BNP Paribas, Calyon, HSBC, J.P. Morgan, Societe Generale and Standard Chartered came in as participants along with six other undisclosed banks.

Proceeds are for general corporate purposes.


Senior syndication of Sabre Energy Industries' S$2.3 billion fundraising has seen Calyon and Maybank join in as equal status mandated lead arrangers. DBS is the sole bookrunner.

Mandated lead arrangers providing S$200 million to S$250 million earn an upfront fee of 200bp over SOR. Proceeds are to support YTL Power International's acquisition of PowerSeraya, the second largest genco in Singapore.

Winmall's S$65 million five-year loan was signed on April 22 via sole bookrunner Oversea-Chinese Banking Corp.

Syndication saw Great Eastern Life Assurance and Overseas Assurance Corp join in at the top as arrangers.

Proceeds are for refinancing purposes.

South Korea

A $120 million facility for LG Telecom was sealed as a club deal on April 17 via mandated lead arrangers Calyon, DBS, Natixis and Standard Chartered .

The loan-style offshore FRN consists of five $24 million portions with maturities of six months, nine months, 12 months, 15 months and 18 months.

Proceeds are for refinancing and general corporate purposes.


Syndication of De Sheng Development's NT$8 billion financing is ongoing via sole mandated lead Taiwan Cooperative Bank, with Bank of Panhsin, Hwatai Bank and Taiwan Business Bank joining in as participants.

The four-year, dual-tranche term loans are priced at 124bp and 129bp over the one-year post office savings rate respectively.

Banks have been invited on two levels in senior syndication and three in general. Equal-status arrangers committing NT$1.2 billion to NT$1.5 billion gain upfront fees of 25bp and 30bp respectively. Meanwhile, participants earn 17bp for commitments of NT$900 million to NT$1.2 billion, 10bp for NT$600 million to NT$900 million, and 5bp flat  for holds between NT$400 million and NT$600 million.

Proceeds are to support a residential property development project.

Taiwan Cement Corp's NT$15 billion dual-tranche fundraising is in the market via a consortium of 10 coordinating arrangers led by Mega International Commercial Bank. Agricultural Bank of Taiwan and King's Town Bank have come in as co-arrangers.

The five-year loan is split equally into two term loans. The secured tranche guaranteed by Hoping Cement Plant is priced at 97.5bp over the 90-day secondary CP rate, while the unsecured tranche is priced at 115bp over the same rate.

Banks have been invited to join as co-arrangers with commitments of NT$500 million to gain an upfront fee of 10bp. Proceeds are to refinance the borrower's existing debt facilities. Signing is slated to be held in mid-May.

Yoho Beach Club & Spa's NT$900 million transaction was signed on April 22 via sole bookrunner Bank of Taiwan.

Secured by land and buildings, the seven-year term loan is priced at 157bp over Bank of Taiwan's two-year deposit rate. There is a pricing floor of 2.8%.

Final allocations saw mandated arranger Bank of Taiwan lend NT$470 million, while participant Taiwan Cooperative Bank contributed NT$180 million. Agricultural Bank of Taiwan, Bank of Kaohsiung, Chang Hwa Commercial Bank, First Commercial Bank and Taiwan Business Bank contributed NT$50 million apiece.

Proceeds are to refinance a NT$935 million eight year term loan signed in October 2005 with Bank of Taiwan as the sole mandated lead arranger.

A NT$6 billion fundraising for Yuen Foong Yu Paper Manufacturing was signed on April 21 via bookrunners and mandated leads Bank of Taiwan, E.Sun Commercial Bank, First Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Taishin International Bank and Yuanta Commercial Bank. The facility was oversubscribed and upsized from NT$5 billion.

The five-year term loan is priced at 50bp over the 90-day primary CP rate with a commitment fee of 15bp.

The leads lent NT$660 million apiece, while lead manager Agricultural Bank of Taiwan and Hua Nan Commercial Bank provided NT$430 million each. Participants Chang Hwa Commercial Bank and Taiwan Business Bank ended up with $260 million.

Proceeds are to refinance existing bilateral facilities and for working capital purposes.

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