Loan Week, April 28-May 4

A roundup of the latest syndicated loan market news.

Syndication of Australian AgriculturalÆs A$391 million dual-tranche fundraising has been completed on a club basis via arrangers ANZ Bank and National Australia Bank.

National Australia Bank committed A$261 million while ANZ Bank contributed A$130 million.

Proceeds are for general corporate purposes.

Downer EDIÆs A$350 million dual-tranche facility has been signed via a syndicate of 10 banks.

The deal is split into a A$260 million four year portion and a A$90 million eight month loan.

Mandated arranger National Australia Bank committed A$117 million. Lenders Bank of China and Oversea-Chinese Banking Corp took A$26 million each while HSBC, Mizuho Bank and United Overseas Bank provided A$27 million apiece. Banco Bilbao Vizcaya Argentaria, BNP Paribas, Westpac Banking Corp and WestLB ended up with A$25 million each.

Proceeds are for general corporate purposes.

Barclays Capital has launched Repco CorporationÆs A$425 million multi-tranche LBO facility. The deal was funded this week.

The facility is split into a senior A$340 million six year portion, with three tranches - a A$90 million amortising loan offering a margin of 225bp over BBSY, a A$180 million bullet facility paying 200bp and a A$70 million working capital facility. The A$85 million six-and-a-half year sub-tranche carries a margin of 600bp.

Arrangers lending A$50 million or above earn a front-end fee of 75bp and co-arrangers receive 55bp for committing between A$35 million and A$49 million.

Proceeds are to support financial sponsor CCMP Capital AsiaÆs leveraged buyout of Repco. Syndication close is targeted for the end of May.


Hynix-ST SemiconductorÆs $750 million five year loan is still yet to launch via mandated arrangers China Development Bank and Korea Development Bank.

The borrower has approached around 18 existing lenders, and some are awaiting credit approval.

Syndication launch has yet to be decided. The purpose of the loan is to fund the construction of the second phase of a wafer plant project based in Wuxi.

Hong Kong

Syndication has closed for China Travel Service (Holdings)Æs HK$2 million five year fundraising via mandated arrangers Bank of China and HSBC.

The deal pays a margin of 36bp over Hibor. The signing ceremony is expected to be held next week.

Syndication has been launched for Shui On CentreÆs HK$2.2 billion dual-tranche facility via sole arranger Standard Chartered.

The five year fundraising is split into a HK$900 million portion and a HK$1.3 billion revolver and offers an all-in of 50bp over Hibor.

Shui On Co is the guarantor. Proceeds are to refinance a HK$1.6 billion five year club signed in May 2005.

Banks are scheduled to revert by May 11.

Sole mandated arranger Standard Chartered has launched United Asia FinanceÆs HK$1.7 billion three year term loan into sub-underwriting.

The margin is 70bp over Hibor. Co-ordinating arrangers committing HK$350 million or more receive an underwriting fee of 9bp and a management fee of 36bp for a top level all-in of 85bp over Hibor.

Proceeds are to refinance existing debt. Banks have until May 9 to respond.


Air India GroupÆs $699.1 million dual currency pre-delivery payment facility closed syndication on April 30 via mandated lead arrangers ABN AMRO, Bank of India, ICICI Bank, State Bank of India and Sumitomo Mitsui Banking Corp. The deal was funded in December 2006.

Proceeds of the term loan are to support the purchase of aircraft and part of the proceeds will be used to refinance an existing facility signed in February 2006. The amount was downsized from $765 million and a portion of the facility can be drawn in Japanese yen.

Syndication has been launched for Suzlon Energy, AE Rotor and SE Drive TechnikÆs Ç1.57 billion multi-tranche credit via mandated arrangers ABN AMRO, ICICI Bank and State Bank of India.

The facility has been funded by the mandated arrangers.

The deal is split into a Ç375 million term loan, a Ç325 million facility, two Ç300 million portions and a Ç275 million loan.

Banks are expected to revert by the end of May.


CIMB BankÆs $200 million three year loan is oversubscribed and the deadline has been extended at the request of banks.

Bank of Tokyo-Mitsubishi UFJ is leading the deal with BayernLB, Bank of China, NordLB and Natixis who joined in sub-underwriting.

The signing ceremony will be held next week (May 7).

Penerbangan MalaysiaÆs $1 billion dual-tranche facility has been funded and pre-signed by sole mandated arranger Standard Chartered.

The deal is split into a $700 million loan that pays 12bp over Libor and a $300 million portion that offers 17bp.

Proceeds are to refinance an existing deal signed in June 2004.


Sole mandated arranger Citigroup has funded Kashf FoundationÆs $24 million multi-tranche facility, a landmark transaction in the microfinance sector.

The financing is divided into a $6 million five year loan, tranche æAÆ, a $10 million seven year facility, tranche æBÆ, and an $8 million three year portion, tranche æCÆ.

Tranches æAÆ and æBÆ have closed as bilateral loans provided by Citigroup. Overseas Private Investment Corp (OPIC) was the guarantor for tranche æAÆ providing political risk insurance.

Tranche æCÆ is being syndicated to domestic banks in Pakistan, with Citigroup, Habib Bank and MCB Bank the joint lead arrangers. Syndication is targeted to close by the end of May.

Proceeds are to support and provide for microfinance services.


Wing Tai HoldingsÆ S$100 million five year facility has closed via sole mandated arranger HSBC. The deal is oversubscribed and the amount is likely to be increased. The deal offers a top level all-in of 80bp over Sibor.

A $44 million five year financing has been signed as a club for Orix Car Rentals via mandated arrangers Bank of Taiwan and Mizuho Corporate Bank which took $22 million each.

Proceeds are for general corporate purposes. The signing ceremony was held on April 30.

South Korea

Hanjin EnergyÆs KRW1.32 trillion dual-tranche facility was signed late last month, with drawdown on April 30 via mandated lead arrangers and bookrunners Hana Bank, National Agricultural Cooperative Federation and Woori Bank.

The fundraising is split into a KRW1.17 trillion term loan, tranche æAÆ, and a KRW150 billion revolving credit tranche æBÆ. Both tranches have a seven year tenor, priced at 115bp and 170bp over the 91-day CD rate respectively.

Allocations for tranche æAÆ saw the three mandated lead arrangers contribute KRW300 billion apiece. Participants Shinhan Bank, Kyongham Bank, Daegu Securities and Korean Exchange Bank committed KRW100 billion, KRW50 billion, KRW40 billion and KRW30 billion respectively while Kwangiu Bank and Kookmin Bank provided KRW25 billion apiece.

Tranche æBÆ saw the mandated lead arrangers contribute KRW50 billion each.

Proceeds are for acquisition finance purposes.

A $52 million eight year term loan for Hanjin Shipping was signed yesterday (Thursday) via lead arrangers Citigroup and Royal Bank of Scotland.

Syndication saw four banks in total join as participants; these were Bank of Tokyo-Mitsubishi UFJ, Kookmin Bank, Korea Exchange Bank and Woori Bank.

The funds will be used for working capital purposes.


A NT$4 billion 12 year financing for Chung HungÆs has been inked via a syndicate of six banks.

Mandated arrangers Taipei Fubon Commercial Bank, Cathay United Bank and Land Bank of Taiwan provided NT$1.1 billion apiece. Managers Central Trust of China held NT$300 million while Export-Import Bank of the Republic of China took NT$250 million and participant Sunny Bank ended up with NT$150 million.

The margin is 41bp over the secondary CP rate. Proceeds are to finance the purchase of aircraft. Chailease Finance is the sponsor.

King Yuan ElectronicsÆ NT$6 billion dual-tranche facility was signed on April 27 via a consortium of 11 banks.

The five year deal is split into a NT$2.4 billion loan that pays 33bp over the primary CP rate and a NT$3.6 billion portion that pays 35bp.

Mandated arrangers Cathay United Bank, Chinatrust Commercial Bank, Citibank, Mizuho Corporate Bank and Taipei Fubon Bank committed NT$840 million each while participants Central Trust of China, Chang Hwa Commercial Bank, E Sun Commercial Bank, Land Bank of Taiwan, Taiwan Business Bank and Taiwan Shin Kong Commercial Bank took NT$300 million apiece.

Proceeds are to fund the purchase of machinery and for working capital purposes.

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