loan-week-january-1521

Loan week, January 15-21

A roundup of the latest syndicated loan market news.

China

Sinopec Sabic Tianjin Petrochemical (SSTPC), a 50-50 joint venture between Saudi Basic Industries Corp (Sabic) and China Petroleum & Chemical Corp (Sinopec), successfully secured an Rmb18.3 billion dual-tranche facility earlier this week via Agricultural Bank of China, Bank of China, China Construction Bank, China Development Bank, Industrial & Commercial Bank of China and Sinopec Finance.

The financing was split into a Rmb12.3 billion long-term portion and a Rmb6 billion working capital facility.

Proceeds are to finance the operation of a petrochemical complex in Tianjin, China.

Hong Kong

Novel Good
's HK$4.9 billion loan has been signed via mandated arrangers Bank of China, China Construction Bank, Calyon, HSBC, Hang Seng Bank, Industrial & Commercial Bank of China and Sumitomo Mitsui Banking Corp.

Guaranteed by Shanghai Industrial Holdings, the three-year debt package is split into a HK$2.8 billion term loan and a HK$2.1 billion revolving credit.

Proceeds are for general corporate and project acquisition purposes.

India

GPT Castings' Rs323 million seven-year term loan was signed last week via sole mandated lead arranger and bookrunner SBI Capital Markets.

Lenders Indian Overseas Bank took Rs183 million, while Allahabad Bank provided Rs140 million.

The deal features an average life of 3.1 years and the repayment will be in 20 quarterly installments after a grace period of one year.

Proceeds are to facilitate the setting up of 2 x 9MVA ferro alloys unit in India.

A Rs5 billion 12-year term loan for Adani Power has been completed via sole mandated lead arranger SBI Capital Markets.

Participants Life Insurance Corporation of India and Dena Bank committed Rs3 billion and Rs2 billion respectively.

Proceeds are to replace the foreign currency lender of a bilateral tranche signed in March 2008 with domestic lenders.

Japan

Nomura Asia Holding's $150 million three-year revolving credit has been inked via mandated lead arrangers Bank SinoPac, Jih Sun International Bank, Taishin International Bank and Taiwan Cooperative Bank.

Taiwan Cooperative Bank committed $35 million, while Jih Sun International Bank took $17 million. Bank SinoPac and Taishin International Bank took $15 million apiece. Among lower tier lenders, China Development Industrial Bank, Industrial Bank of Taiwan, Sunny Bank and Yuanta Commercial Bank each committed $10 million. Bank of Taiwan joined in with an $8 million ticket and Bank of Panhsin, Far Eastern International Bank, Hwatai Bank and United Taiwan Bank each pledged $5 million.

Guaranteed by Nomura Securities, the deal is priced at 160bp over three- or six-month Libor.

Proceeds are for working capital purposes.

Malaysia

Export-Import Bank of Malaysia's $100 million three-year term loan was inked last week via sole mandated lead arranger and bookrunner Sumitomo Mitsui Banking Corp. Bank of China (Malaysia) and Norinchukin Bank (Singapore) joined in as co-arrangers, while United Overseas Bank participated as a lead arranger.

Proceeds are for debt repayment and for general corporate purposes.

Singapore

A $281 million debt facility for Mercuria Energy Trading was upsized from $150 million and sealed on January 20 via mandated lead arrangers and bookrunners BNP Paribas, ING Bank, Societe Generale and Standard Chartered Bank.

The bookrunners each committed $30 million, except for Standard Chartered Bank which held $50 million. Joint lead arrangers China Minsheng Bank lent $30 million, while Industrial & Commercial Bank of China (London) came in with a hold of $25 million. Bank of Ayudhya Public Bank and Europe Arab Bank took $20 million apiece. Lead arrangers Chinatrust Commercial Bank (Singapore), Indian Bank and Raiffeisen Zentralbank Osterreich (Singapore) each contributed $10 million and arrangers Mega International Commercial Bank (Offshore) gave $6 million. Bank Mandiri (Singapore) and Union de Banques Arabes et Francaises (Singapore) joined in with $5 million tickets.

The deal pays a spread of 150bp over Libor and proceeds are for working capital purposes.

Taiwan

Chung Shan Medical University's NT$3.4 billion multi-tranche financing will be launched into syndication next week via bookrunner Land Bank of Taiwan.

The debt package is split into a NT$960 million term loan tranche A, a NT$2.14 billion term loan tranche B and NT$1 billion revolving credit tranche C. Tranche A consists of a NT$140 million seven-year tranche A1 and an NT$820 million 18-year tranche A2; while Tranche B comprises a NT$650 million seven-year tranche B1 and a NT$1.5 billion 18-year tranche B2. However, the total outstanding amount cannot exceed NT$3.4 billion.

The facility is priced at 97bp over the average one-year savings rate offered by Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank. The minimum interest rate before tax is 2%.

Proceeds are to support the construction of a new school building, a new hospital and for working capital purposes.

A NT$1.5 billion fundraising for Highwealth Construction Corp has been completed via sole bookrunner Taiwan Cooperative Bank.

The three-year revolver features a margin of 114bp over the average one-year savings rates for Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank.

Joining in as mandated lead arrangers were Jih Sun International Bank, Taichung Commercial Bank and Taiwan Business Bank. Bank of Panhsin and Ta Chong Bank came in as participants.

Proceeds are for working capital purposes. The borrower is also in the market with a NT$4.5 billion transaction arranged by Taiwan Cooperative Bank. Five banks have joined the loan while two banks are processing credit approvals to join the facility. Closing is slated for the end of the month.

King Yuan Electronics' NT$13 billion financing was signed last week via a consortium of 11 coordinating arrangers led by Chinatrust Commercial Bank and Taipei Fubon Commercial Bank.

The secured term loan is priced at 105bp over the secondary CP rate. However, if the pretax profit margin of the borrower is higher than 5%, the margin will be reduced to 85bp. There is an interest rate floor of 1.75% before tax, effective in the first year after drawdown.

Syndication saw Chinatrust Commercial Bank and Taipei Fubon Commercial Bank take NT$1.1 billion each, while Bank of Taiwan, Cathay United Bank, E.Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Ta Chong Bank, Taiwan Business Bank and Taiwan Cooperative Bank held NT$1 billion apiece. Participants Bank of Panshin, Chang Hwa Commercial Bank, Industrial Bank of Taiwan, Taichung Commercial Bank, Taishin International Bank and Yuanta Commercial Bank joined in with NT$300 million each.

Proceeds are to refinance existing debt facilities, including a NT$8.1 billion facility signed in April 2006, a NT$6 billion loan signed in April 2007 and a NT$3 billion facility signed in January 2009.

Syndication of Lextar Electronics Corp's NT$8 billion debt has been closed via a consortium of eight local banks led by Bank of Taiwan.

The five-year term loan offers a spread of 50bp over the 90-day primary CP rate with a pretax interest rate floor of 1.8% and a two-year extension option.

Cathay United Bank, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank and Taipei Fubon Commercial Bank came in as coordinating arrangers, while Export-Import Bank of the Republic of China, Taishin International Bank and Yuanta Commercial Bank joined at lower tiers.

Proceeds are to finance the construction of factories and for the purchase of LED machinery and equipment.

Ruentex Development's NT$4.6 billion dual-tranche financing has been launched into general syndication via bookrunner Land Bank of Taiwan.

The six-year debt package consists of a NT$4.4 billion term loan and a NT$200 million guarantee facility. The term loan is priced at 64bp over the average one-year savings rates offered by Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank. The minimum interest rate is 1.75%

Banks have been invited to join at three levels. Joint arrangers taking NT$1 billion or above receive 15bp, while managers committing NT$600 million to NT$999 million earn 10bp. Participants taking NT$300 million to NT$599 million gain 5bp.

Proceeds are to finance the construction of a building in Sanchong, Taipei. Banks have until February 12 to revert.

Thailand

A $250 million 9.5-year ship financing for Precious Shipping was inked as a club deal via mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Bank of Ayudhya, Export-Import Bank of Thailand, Kasikornbank and Thanachart Bank.

Proceeds are to finance the acquisition of dry bulk ships.

The signing of a $250 million-equivalent dual-currency facility for Charoen Pokphand Group (CP Group) took place in Hong Kong last week via sole mandated lead arranger and bookrunner Siam Commercial Bank.

The six-year debt package comprises a $202 million tranche and a Rmb327 million portion.

The lead committed $150 million, while Bangkok Bank and Siam City Bank joined at lower levels with $50 million tickets.

Proceeds are to support the enhancement of Lotus Supercenter in China which is operated by Chia Tai Enterprises International, a subsidiary of CP Group. 

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