Loan Week, Aug 11 - Aug 17

A round up of the latest syndicated loan market news.

RiverCity MotorwayÆs A$1.8 billion financing has been launched via mandated lead arrangers ABN AMRO, Calyon, HSBC, National Australia Bank and WestLB. The facility was fully underwritten in May 2006. Proceeds will be used to support the A$3.254 billion PPP project to develop the North-South Bypass tunnel in Brisbane.


Sole mandated lead arranger Standard Chartered has yet to close the books for Bangladesh PetroleumÆs $250 million financing. The one year facility saw a strong response in general syndication said bankers in the arranger group. Around 20 banks are said to be in the final stages of processing credit approvals.


Syndication of the A$193 million equivalent multi-tranche loan for China National Chemical Corp has been completed. Sole mandated lead arranger Standard Chartered saw 11 banks join in syndication.

Joining as lead arrangers are ANZ Investment Bank, Calyon, Bank of Tokyo-Mitsubishi UFJ, CCB International Finance, Citic Ka Wah Bank, HSH Nordbank, ICBC Asia, NordLB and WestLB. GE Commercial Finance and ICICI Bank came in as arrangers.

Allocations will be finalised shortly and signing is scheduled for the end of August.

Hong Kong

Central Waterfront Property Development is sounding banks for a HK$15 billion project financing. The borrower last visited the market when it raised HK$7 billion via a six year credit. That facility offered 59bp over Hibor and was a special purpose vehicle of Sun Hung Kai Properties, Henderson Land Development, Hong Kong & China Gas and Bank of China Group Investment. BOCI Capital, ABN Amro, Citicorp International, National Australia Bank and Sumitomo Bank led the deal.

The $85 million fundraising for Crown Worldwide Movers has been completed via a syndicate of 11 banks.

Mandated co-ordinating arranger Standard Chartered absorbed $25 million. Arrangers BNP Paribas, Bumiputra Commerce Bank, ICBC Asia and United Overseas Bank lent $8 million each while Fubon Bank (Hong Kong) committed $7 million and joined as an equal status arranger.

Lead managers Citic Ka Wah Bank and First Commercial Bank took $5 million apiece. Bank of Tokyo-Mitsubishi UFJ and China Construction Bank contributed $4 million each and Bank of East Asia came in with a hold of $3 million.

Proceeds will be used to finance the acquisition of the British and Irish Business Services Division of SIRVA. Signing will take place shortly.

The $70 million five year term loan for Xinhua Finance has been provided on a club basis. ABN AMRO lent $40 million, GE Capital held $20 million and Mizuho Corporate Bank took $10 million. The margin is 275bp over Libor and proceeds are for working capital and acquisition purposes.

BNP Paribas, Calyon, Mizuho Corporate Bank and Standard Chartered have won the mandate for Bharat Petroleum Corp (BPCL)Æs $200 million five year facility. The borrower last tapped the market when its subsidiary, Bharat Oman Refinery, raised $1.4 billion equivalent via a 14 year term loan. That facility was solely led by State Bank of India.

Market talk is that Dr ReddyÆs is tapping the market for a $500 million financing. Citibank, BNP Paribas and Calyon are arranging the deal. The five to six year facility will be used to fund its Betapharm acquisition in Germany.

Syndication of GTLÆs $250 million loan has yet to close with banks expected to revert by the end of August. Thus far, the facility has secured commitments from a handful of banks. Bank of Baroda, Bank of India, State Bank of India and Standard Chartered are leading the deal.

Indian Overseas Bank has completed a $175 million five year term loan. Chinatrust Commercial Bank, DBS Bank, HSBC, Natexis Banques Populaires, RZB and SMBC are leading the facility.

Bank of Tokyo-Mitsubishi UFJ, BayernLB, Commerzbank, Commonwealth of Australia, Mizuho Corporate Bank and NordLB International joined as arrangers while Banque des Mascareignes, Cathay United Bank, Sumitomo Trust & Banking, Maybank and Taiwan Cooperative Bank are co-arrangers. Hua Nan Commercial Bank and International Commercial Bank of China are the lead managers. Proceeds will be used for general corporate purposes.

JSL SteelÆs $150 million seven year loan has been downsized from $200 million and was signed on August 10. A total of six banks are participating in the facility.

Mandated arranger ABN AMRO committed $45 million while arrangers KfW took $35 million, KBC Bank pledged $25 million, Standard Chartered provided $20 million and Banque Cantonale Vaudoise lent $15 million. Aozora Bank joined as manager with a ticket of $10 million. The deal offers a margin of 170bp over Libor and proceeds will be used for export finance purposes.

Reliance PetroleumÆs $1.5 billion dual-tranche credit has been launched into general syndication. The group of 14 mandated arrangers are ABN AMRO, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, Mizuho Corporate Bank, State Bank of India, Standard Chartered Bank and SMBC.

The transaction consists of a $950 million seven year tranche and a $550 million 10 year term loan with an average life of 6.6 years. A roadshow will be held on September 18 and banks have until September 25 to respond.

Market talk is that UTI Bank is tapping the market for a $125 million credit. Proceeds will be used for general corporate purposes. UTI Bank came to the market in September 2005 when it borrowed $120 million via a dual-tranche term loan that carried a spread of 39bp over Libor.


BP has signed $2.4 billion worth of loans to finance the Tangguh liquefied natural gas (LNG) project. The financing is split between a $1.95 billion term portion solely provided by Japan Bank of International Corp, a $350 million term loan solely provided by Asia Development Bank, a $1.65 billion term portion that was syndicated to international banks and a $1.3 billion tranche provided by Chinese banks.

The arranger group comprises Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Fortis Bank, ING Bank, Mizuho Corporate Bank, Standard Chartered, SMBC, Agricultural Bank of China, China Construction Bank, China Development Bank, Export-Import Bank of China and Industrial & Commercial Bank of China.

Proceeds will be used to support the $5 billion two-train natural gas liquefaction plant development project in the eastern Indonesian province of Irian Jaya (Papua) to export LNG to China, Japan and Korea.


CIDO Tanker has signed a $324 million 10 year ship financing via sole mandated lead arranger DnB NOR Bank. A group of four European banks joined the transaction. CIDO Tanker last tapped the market for a Ñ30 billion ship financing in August 2005 that was lead arranged by SMBC.

DnB NOR Bank lent $87 million, lead arranger Lloyds Bank committed $87 million while arrangers HELABA, Hypovereinsbank and NordLB contributed $50 million apiece.

The deal offers a spread of 120bp over Libor. Proceeds are to finance the purchase of eight product tankers, six of which are to be built by Hyundai MIPO Shipyard (Korea) and two by STX Shipyard.

AirAsia has successfully completed a $230 million aircraft financing. Kuwait Finance House and RHB Sakura Merchant Bankers are the mandated arrangers.

Proceeds are to finance the purchase of six A320-200 aircraft that will be delivered in December 2007. The signing ceremony was held on August 15.

Sub-underwriting for Commerce Capital LabuanÆs $1.4 billion fundraising has been launched via mandated lead arrangers ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Citigroup and Standard Chartered. Bumiputra Commerce Holdings is acting as the guarantor.


Las Vegas Sands Corp has mandated eight banks to arrange a $1.4 billion Singapore dollar equivalent two year bridge loan to fund the costs of its planned Marina Bay integrated resort project. The arranger group comprises Citigroup, DBS Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley, OCBC Bank and United Overseas Bank.

Sole mandated lead arranger Standard Chartered has completed the $400 million fundraising for Neptune Orient Lines and APL (Bermuda). The seven year facility saw 18 banks join in general syndication.

Mandated lead arranger Standard Chartered ended up with S$50 million. Joining as lead arrangers are SMBC taking S$37 million and Sumitomo Trust and Banking committing S$35 million while Bank of Communications, Bank of Tokyo-Mitsubishi UFJ, DnB NOR Bank and Mizuho Corporate Bank joined with holds of S$33 million each. Four other lead arrangers include Calyon providing S$30 million, BayernLB (Hong Kong) contributing S$25 million and DZ Bank and Fortis Bank pledging S$22 million each.

Lead managers are Taiwan Cooperative Bank offering S$10 million while five others û Banca di Roma, Bank of Taiwan, Cathay United Bank, Chang Hwa Commercial Bank and Maybank û came in with commitments of S$6 million apiece. Export-Import Bank of China and Shanghai Commercial and Saving Bank took S$3.5 million each.

Proceeds will be used for general corporate proposes and signing was held last Thursday (Aug 10).

The $96 million 10 year fundraising for Tailwind Parcel Tankers has been completed. Mandated arranger Nordea Bank and lender DVB Merchant Bank (Asia) took $48 million apiece.

Sri Lanka

Sole mandated lead arranger Standard Chartered has launched the $25 million financing for Sampath Bank into syndication. The one year facility carries a margin of 33bp over Libor and Standard Chartered is inviting banks to join as lead arrangers. Banks providing $5 million or above receive 33bp, translating to a top level all-in of 66bp over Libor. Proceeds will be used for working capital purposes and banks have until September 11 to revert.

South Korea

A group of banks has been mandated to arrange National Agricultural Cooperative FederationÆs Ç200 million two year facility. The mandated lead arrangers are ABN AMRO, Barclays Capital, BayernLB, BNP Paribas, Banc of America Securities Asia, Calyon, DBS Bank, Standard Chartered and SMBC. The arranger group is expected to syndicate the deal to a wider audience early next week.

Rumor has it that Posco is seeking a project financing to fund the construction of a steel plant in Orissa, India.

Chung Hung Steel Corp's NT$12 billion financing has so far secured 17 commitments in general syndication. They include Cathay United Bank, Chang Hwa Commercial Bank, Central Trust of China, China Development Bank, Chinese Bank, ChinFon Commercial Bank, EnTie Commercial Bank, Far Eastern International Bank, First Commercial Bank, Fuhwa Bank, Hsinchu International Bank, Hua Nan Commercial Bank, KingÆs Town Bank, Overseas Chinese Bank, Shanghai Commercial & Savings, Shin Kong Commercial Bank and Sunny Bank. Allocations are to be finalised.

Eva AirwaysÆ NT$14.9 billion facility has met with an overwhelming response and was increased from NT$10.4 billion.

Mandated lead arrangers Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial bank, First Commercial Bank, Hua Nan Commercial Bank, International Commercial Bank of China and Taipei Fubon Commercial Bank held NT$1.5 billion each. Joining as participants are Cathay Life Insurance pledging NT$1 billion, Bank of Overseas Chinese and Central Trust of China providing NT$800 million apiece and Export-Import Bank of the Republic of China, Land Bank of Taiwan and Taiwan Business Bank lending NT$600 million apiece.

Signing is scheduled to be held on August 31.

Far Eastern ConstructionÆs NT$5.5 billion financing has been allocated. A total of nine banks are leading the deal.

The mandated arrangers are Hua Nan Commercial Bank committing NT$1 billion, Chiao Tung Bank, Chinatrust Commercial Bank, E.Sun Commercial Bank, International Commercial Bank of China, Ta Chong Bank, Taipei Fubon Commercial Bank and Taishin International Bank contributing NT$600 million each and Far Eastern International Bank lending NT$75 million. Proceeds are to refinance existing debt and for building a shopping mall in Taipei, Taiwan.

Allocations have been finalised for Ocean Blue ConstructionÆs NT$2.2 billion fundraising.

Mandated arrangers Cathay United Bank, International Commercial Bank of China and Union Bank of Taiwan lent NT$380 million apiece while participants include EnTie Commercial Bank, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank, and Taiwan Cooperative Bank taking NT$220 million each and First Commercial Bank with a ticket of NT$180 million. The facility offers a spread of 92bp over the savings deposit rate. Proceeds are for the purchase of land and for construction purposes.


Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank, Standard Chartered and SMBC have launched Total Access Communication (DTAC)Æs Bt 4 billion yen equivalent (Ñ12.4 billion) fundraising into syndication.

The five year facility offers a spread of 46.5bp over Yen Libor and is being marketed on two tiers. Arrangers providing Ñ1.7 billion or above will get 12bp leading to a top level all-in of 50.2bp over Yen Libor while lead managers taking Ñ1.1 billion or above will receive 9bp for a top level all-in of 49.3bp.

Bank responses are due next Wednesday (August 23).


Market talk is that Long Son Refinery is sounding banks for a project financing worth $3 billion.
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