Loan Week

Loan Week, July 13-19

A roundup of the latest syndicated loan market news.

Hong Kong

BAIC Hong Kong Investment Corp has sealed a $235 million-equivalent financing through mandated lead arrangers and bookrunners Bank of China, Bank of Communications, Chinatrust Commercial Bank, Fubon Bank, J.P. Morgan, Korea Development Bank, Natixis, Standard Chartered and Wing Lung Bank.

Guaranteed by BAIC Motor Corp, the deal is available in both US dollars and Hong Kong dollars, and offers a margin of 285bp over Libor and Hibor respectively.

Syndication saw Dah Sing Bank, Hua Nan Commercial Bank and Mega International Commercial Bank join in as lead arrangers while Bank Sinopac and Chang Hwa Commercial Bank came in as senior managers.

Proceeds are for refinancing and general corporate purposes.

Metropolitan Light and Hong Kong Broadband Network have obtained a HK$3 billion financing through bookrunners and mandated lead arrangers BNP Paribas, Chinatrust Commercial Bank, Credit Agricole, DBS, GE Commercial Finance, ING, JPMorgan, Mizuho, Natixis, Standard Chartered, SMBC, Taipei Fubon Commercial Bank and UOB.

The facility consists of HK$2.5 billion and HK$250 million term loans, and a HK$200 million revolving credit.

Proceeds are to support the leveraged buyout of City Telecom (HK) by CVC Asia Pacific, for capital expenditure and working capital purposes.



Asian Colour Coated Ispat sealed a Rs1.4 billion seven-year, nine-month term loan last Thursday (July 12) through sole mandated lead arranger SBI Capital Markets.

The transaction offers a margin of 25bp over State Bank advance rate and will be repaid in 24 quarterly instalments after a six-month grace period.

Final allocations saw participant Bank of Baroda commit Rs270 million while State Bank of Patiala and Union Bank of India provided Rs250 million each. Andhra Bank and Dena Bank pledged Rs200 million and Rs190 million respectively while Indian Overseas Bank came in with Rs125 million. State Bank of Mysore took Rs100 million.

Proceeds are to support the expansion of a steel plant.



Weststar Aviation Services has signed a M$140 million loan through mandated lead arrangers AmInvestment Bank and Maybank Investment Bank.

The debt package comprises two six-year term loans of M$46 million and M$19 million, and a M$76 million five-year revolver.

Proceeds are for aircraft financing and working capital purposes.


New Zealand

Oregon Group successfully obtained a NZ$230 million 3.5-year facility through sole bookrunner and mandated lead arranger HSBC.

The fundraising consists of a NZ$160 million term loan and a NZ$70 million revolving credit.

Syndication saw Bank of New Zealand join in as a participant.

Proceeds are to refinance two existing facilities signed in June 2010 and for working capital purposes.


South Korea

Future Environmental Energy has completed a W27 billion fundraising through sole bookrunner and mandated lead arranger Korea Development Bank.

The financing is split into three 16-year tranches of W12.7 billion, W7.6 billion and W3.8 billion, and a W3 billion five-year portion.

Syndication saw Kiamco Green Infra Fund 1st, Korea Finance Corp and Kyobo Life Insurance join in as participants.

Proceeds are for the development and construction of a wastewater treatment plant in South Korea.



AvioCast obtained a NT$572 million financing last Wednesday (July 11) through sole bookrunner and mandated lead arranger Land Bank of Taiwan.

The debt package consists of two seven-year term loans of NT$147 million a NT$175 million portion, and NT$100 million and NT$150 million revolvers maturing in five years. The term loans are priced at 103bp over a one-year average savings rate of six local banks while the revolvers are priced at 113bp over the same reference rate.

Syndication saw Agricultural Bank of Taiwan, Bank of Kaohsiung, Bank of Taiwan and Taiwan Cooperative Bank come in as managers while Chang Hwa Commercial Bank, Hua Nan Commercial Bank and Taichung Commercial Bank joined in as participants.

Proceeds are for refinancing and working capital purposes.

Yieh United Steel Corp completed a NT$13 billion five-year term loan last Friday (July 13) through bookrunners and mandated lead arrangers First Commercial Bank, Land Bank of Taiwan and Mega International Commercial Bank.

The guaranteed facility is split into a NT$10.9 billion tranche and a NT$2.1 billion portion, which are priced at 100bp and 110bp, respectively over the 90-day secondary CP rate with a pre-tax interest rate of 2%.

Syndication saw Chang Hwa Commercial Bank and Taiwan Business Bank act as co-arrangers while Agricultural Bank of Taiwan, Bank of Taiwan, Hua Nan Commercial Bank, Taichung Commercial Bank, Taishin International Bank and Yuanta Commercial Bank joined as managers. Bank of Kaohsiung, Sunny Bank and Taiwan Cooperative Bank came in as participants.

Proceeds are to refinance two existing loans; a NT$12.5 billion transaction signed in August 2012 and a NT$2.5 billion facility signed in May 2006.

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