Loan Week, August 25 - August 31

A round up of the latest syndicated loan market news.

CLP Australia Finance has signed a A$1.6 billion fundraising. A total of 15 banks are participating in the transaction. Proceeds will be used for refinancing.

Mandated arranger National Australia Bank committed A$150 million. Participants are BNP Paribas and Westpac taking A$200 million each, Royal Bank of Scotland providing A$150 million, WestLB contributing A$127.5 million, Commonwealth Bank of Australia and Sumitomo Mitsui Banking Corp pledging A$100 million apiece, Mizuho Corporate Bank lending A$85 million, Bank of Tokyo-Mitsubishi UFJ holding A$80 million, ABN AMRO Bank (Australia) and ABN AMRO Bank (Hong Kong) committing A$75 million apiece, Bank of China lending A$70 million, BayernLB and HSBC providing A$63 million each and Societe Generale ending up with A$62.5 million.

Ridley CorporationÆs A$1.994 billion financing has been signed via mandated arrangers ABN AMRO, Calyon, HSBC, National Australia Bank and WestLB. The lead banks held A$398.8 million apiece. Bilfinger Burger Concessions, Baulderstone Hornibrook and Leighton Contractors are the sponsors. Proceeds are to support the design, construction, operation and maintenance of the North South Bypass Tunnel project in Brisbane.


Syndication of Primary Technology (Foshan)Æs $80 million financing has yet to close via sole mandated lead arranger Citigroup. Thus far, the five year facility has been oversubscribed 1.5 times. However, the facility size is unlikely to be increased said a banker close to the deal. The financing carries a spread of 59bp over Libor and proceeds will be used to refinance existing debt. The Taiwanese parent company, Premier Image Technology Corp is providing a guarantee.

Sole mandated lead arranger and bookrunner Citigroup has closed syndication of Silitech Technology (Suzhou)Æs $38 million equivalent facility. The three year deal is two times oversubscribed; however, the facility size is unlikely to be increased. The dual currency facility is split into a $20 million equivalent renminbi tranche that is priced at 90bp over PBOC and an $18 million tranche that carries a spread of 57.5bp over Libor.

The Taiwanese parent company, Silitech Technology Corp is serving as the guarantor. Proceeds will be used to fund capital expenditure and for working capital purposes. Allocations will be finalised shortly and signing is targeted for mid-September.

Hong Kong

Market talk is that Cathay Pacific is sounding banks for a S$600 million aircraft financing. The facility will be used to refinance a $600 million one year facility arranged by SMBC, DZ Bank and Fortis Bank last week.

Hutchison WhampoaÆs HK$9 billion financing has been closed on a club basis via a consortium of 12 banks. The arranger group consists of Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank, Hang Seng Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, Royal Bank of Scotland, Standard Chartered, SMBC and WestLB.

Proceeds will be used to refinance a HK$12 billion dual tranche facility signed in July 2001, comprising a HK$9 billion five year tranche due in November and a HK$3 billion seven year tranche due in 2008.

Signing is targeted for September 14.

K Wah Stones Holdings has successfully raised HK$1.8 billion from the market via a syndicate of 14 banks. The 3 + year facility has received an overwhelming response from general syndication and was increased from HK$1.5 billion.

Mandated coordinating arrangers Bank of China (Hong Kong) and Hang Seng Bank ended up with HK$250 million each, Standard Chartered (Hong Kong) took HK$200 million and Bank of Communications (Hong Kong) pledged HK$240 million and came in as an equal status coordinating arranger.

Co-arrangers are Wing Lung Bank holding HK$150 million and China Construction Bank (Hong Kong) and Shanghai Commercial Bank committing HK$130 million apiece. Senior Managers include Bank of East Asia and Wing Hang Bank absorbing HK$100 million each while five others û Liu Chong Hing Bank, Maybank (Hong Kong), Mizuho Corporate Bank, Nanyang Commercial Bank and Public Bank (Hong Kong) û came in with holds of HK$50 million apiece.

Proceeds will be used for working capital purposes and signing will take place shortly.

Central Proteinaprima has successfully raised $185 million from the market. Mandated arranger Barclays Capital committed $125 million while lenders SMBC provided $40 million and Bank Danamon took $20 million. Centralpertiwi Bahari, Centralwindu Sejati, Central Panganpertiwi, Central Agromina and Marindo Lab Pratama are providing a guarantee. Proceeds will be used for acquisition financing.

South Korea

Market talk is that Hanjin Shipping is sounding banks for a $520 million ship financing. The borrower last visited the market when it raised $163 million via a 12 year facility. That deal was arranged by BNP Paribas, Citigroup, ING Bank, SG Asia and SMBC.

The Ç200 million two year fundraising for National Agricultural Cooperative Federation (NACF) is still progressing in syndication with banks expected to revert by next Thursday (September 7). The arranger group consists of ABN AMRO, Barclays Capital, BNP Paribas, BayernLB, Calyon, Citigroup, DBS Bank, Standard Chartered and SMBC. BNP Paribas is acting as the documentation and facility agent while Calyon is the publicity agent.


Chailease Finance has hired Standard Chartered to arrange its $60 million financing. The three year facility will be used for general corporate purposes. The borrower last tapped the market when it raised NT$4 billion via a special purpose vehicle in June 2006. That 12 year facility was priced at 45bp over CP rate and was led by Hua Nan Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.

Eliter International Corp has launched a NT$2.2 billion financing via lead mandated arrangers Chang Hwa Commercial Bank and Land Bank of Taiwan. Agriculture Bank of China, Shanghai Commercial & Savings Bank and Taiwan Business Bank joined as participants.

The deal comprises NT$1.35 billion and NT$340 million 15 year term loans, and a seven year NT$510 million tranche. The margin is 220bp over the average deposit rate for each tranche. Proceeds are to support the construction of a five-star hotel in Kaohsiung.

Gio Optoelectric Corp has signed a NT$1.5 billion facility on a club basis. Cathay United Bank, Chang Hwa Commercial bank, First Commercial Bank, Hua Nan Commercial Bank, International Commercial Bank of China and Land Bank of Taiwan are leading the deal.

The transaction is split into NT$1.23 billion and NT$270 million five year term loans, both with a margin of 50bp over the CP rate.

Mandated lead arrangers First Commercial Bank, KBC Bank and Mizuho Corporate Bank have launched Inventive InternationalÆs $100 million revolving credit into general syndication. The five year facility carries a margin of 69.5bp over Libor and is being guaranteed by the parent company, Ya Hsin Industrial. Proceeds will be used to repay existing debt and for general working capital. A site visit at Suzhou was held on Thursday (August 31).

Land Bank of Taiwan has been mandated to arrange Ji Mei ConstructionÆs NT$3.4 billion dual tranche fundraising. The deal consists of NT$2.92 billion and NT$480 million five year term loans. Proceeds are for general corporate purposes.

Taiwan SecuritiesÆ NT$3 billion loan has been launched into syndication. Cathay United Bank, Chinatrust Commercial Bank, Far Eastern International Bank, Hua Nan Commercial Bank, International Commercial Bank of China, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Taiwan Business Bank are the mandated arrangers.

The facility offers a margin of 35bp over the CP rate and proceeds are for working capital purposes.

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