loan-week-july-21--28

Loan Week, July 21 - 28

A round up of the latest syndicated loan market news.
Australia

Incitec Pivot has successfully raised A$420 million ($318 million) from the market with a total of five banks participating in the deal. The lenders are Commonwealth Bank of Australia, which holds A$115 million, while National Australia Bank and Westpac joined with commitments of A$100 million apiece. Rabobank is providing A$65 million while ANZ is pledging A$50 million.


Hong Kong

The HK$2.5 billion ($322 million) fundraising for China Resources Land has been completed with nine banks participating. The facility carries a margin of 34bp over Hibor.

Mandated co-ordinating arrangers Bank of China (Hong Kong) took HK$450 million and four others û Calyon, DBS Bank, HSBC and Standard Chartered (Hong Kong) û joined with tickets of HK$355 million each, while Bank of Tokyo-Mitsubishi UFJ contributed HK$300 million.

Co-arranger Citic Ka Wah Bank ended up with HK$150 million while Nanyang Commercial Bank and Bank of China (Macau) took HK$100 million and HK$80 million respectively and came in as senior managers. Signing is tentatively targeted for the end of this week.


Sole mandated lead arranger Citic Ka Wah Bank launched China Special Steel HoldingsÆ $30 million term facility into general syndication on Tuesday (July 25). The loan offers a margin of 155bp over Libor and has an average life of 2.5 years.

The three year financing is being marketed in two tiers. Lead arrangers committing $5 million or above get a management fee of 55bp, translating to a top level all-in of 177bp over Libor. Arrangers providing $3 million to $4 million receive an upfront fee of 37.5bp for an all-in of 170bp over Libor.

The loan marks the borrowerÆs debut in the market. Proceeds will be used to refinance existing debt and for general working capital purposes. Banks have until August 18 to respond.


The HK$13.3 billion ($1.7 billion) facility for Henderson Land Development was signed on Wednesday (July 26) via a consortium of 24 banks. The financing is the largest amount raised so far this year and the biggest HK dollar loan on record.


Joint mandated lead arrangers and bookrunners Citic Ka Wah Bank and UOB Asia have launched Huafeng Textile International GroupÆs HK$250 million facility into general syndication. Thus far, the five-year financing has secured commitments from a handful of banks with several others still waiting for approvals.

Banks are being invited to join on two levels. Lead arrangers contributing HK$46 million or above receive an upfront fee of 60bp, translating to a top level all-in of 190bp over Hibor. Arrangers providing HK$30 million to HK$45 million get 45bp for an all-in of 185bp over Hibor.

The loan is priced at 170bp over Hibor, features a put option at the end of the fourth year and has an average life of 2.97 years. The borrowerÆs subsidiaries Treasure Wealth Assets and Huafeng Trading Macau Commercial Offshore are acting as the guarantors. Proceeds will be used for working capital purposes and to refinance existing debt.

The deadline for responses is expected to be at the end of this week.


Signing for Public Financial HoldingsÆ HK$2 billion ($257 million) financing took place last Friday (July 21). The facility saw 15 banks join in sub-underwriting.

The mandated lead arranger group comprises Barclays Capital, Public Bank, DBS Bank, Bumiputra Commerce Bank (Hong Kong), ANZ Banking Group, Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, BayernLB, Citic Ka Wah Bank, Calyon, HVB, Mizuho Corporate Bank, SMBC, UOB Asia and WestLB (Singapore).

Proceeds will be used to refinance a bridge facility that is maturing in August 2006.


India

Market talk is that Air India is tapping the market for a $750 million three year aircraft financing via a three bank group. A formal mandate will be announced shortly.

Rumor also has it that ICICI Bank is seeking a $150 million two year financing. A group of banks is close to be being mandated.

ICICI Bank last tapped the market in March 2006 when it raised $300 million via a one-year term facility. That facility was priced at 13bp over Libor and was led by Lloyds TSB Bank, ABN AMRO, Banc of America Securities Asia, Calyon, Citigroup Global Markets (Singapore), DBS Bank, DZ Bank, HSBC, Natexis Banques Populaires, RZB Austria, Standard Chartered and BNP Paribas.


Allocations for Indian Farmers Fertiliser Cooperative (IFFCO)Æs Ñ27.5 billion ($235 million) fundraising have been finalised. A total of 11 banks are participating in the deal.

Mandated lead arrangers are ICICI Bank providing Ñ10.45 billion, Calyon taking Ñ5.45 billion and DBS Bank and Rabobank lending Ñ3.3 billion each. Arab Bank and Bank of Taiwan joined with holds of Ñ1.1 billion apiece and Cathay United Bank ended up with Ñ600 million. Four other Taiwanese banks û Chiao Tung Bank, First Commercial Bank, Land Bank of Taiwan and United Bank of Taiwan û joined with tickets of Ñ550 million each.

The facility was pre-funded by Calyon and ICICI Bank in May 2006. Proceeds will be used to fund the Rs26.2 billion ($560 million) acquisition of a di-ammonium phosphate plant from Oswal Chemicals & Fertilisers in Paradee, Orissa.

Signing took place on Tuesday (July 25).

Reliance Natural Resources (RNRL)Æs $312 million 5 + year stand-by letter of credit has been launched into general syndication via mandated lead arrangers Barclays Capital, Banc of America Securities Asia, BNP Paribas, DBS Bank, KfW and SMBC.

The facility carries a spread of 75bp over Libor and is being marketed on three tiers. Lead arrangers committing $15 million or above earn 37.5bp, equating to a top level all-in of 82.5bp over Libor; arrangers pledging $10 million to $14 million receive 32.5bp for an all-in of 81.5bp, while lead managers providing $5 million to $9 million get 25bp for 80bp all-in.

All the arrangers are running the books while Barclays Capital is the documentation and facility agent. Proceeds will be used for working capital purposes. The financial close is scheduled for August 4.
Japan

Market talk is that Softbank Corp is tapping the market for a Ñ1.4 trillion ($12 billion) financing in order to take out a Ñ1.28 trillion bridge loan that was signed last year and used to acquire Vodafone in Japan.


Macau

The $700 million dual tranche fundraising for MGM Grand Paradise has been signed via a consortium of 27 banks. The facility comprises a $10 million revolver that closed as a club and a $690 million term portion.

Mandated lead arrangers are Banc of America Securities Asia and HSBC, holding $75 million apiece, BNP Paribas (Hong Kong), Bank of China (Macau), Caixa-Banco de Investimento, CCB International Finance, Royal Bank of Scotland, which are lending $70 million each and SMBC, which is taking $40 million.

Joining as arrangers are Banco Commercial de Macau, Bank of Scotland, ICBC (Macau) and ICBC Asia, contributing $12 million apiece, and 10 other banks pledging HK$10 million each. They are Aareal Bank, Banco Espirito Santo do Oriente, Bank of Nova Scotia, BayernLB (Hong Kong), CITIC Ka Wah Bank, HSH Nordbank (Hong Kong), Bayerische Hypo-und Vereinsbank (Hong Kong), Mizuho Corporate Bank, United Overseas Bank and Banco Weng Hang. Allied Irish Banks came in with a hold of $8 million and joined as an equal status arranger.

Senior manager Bank of East Asia committed $6 million while two others û Calyon (Hong Kong) and RZB Austria û joined with tickets of $5 million apiece.

Proceeds will be used to finance the development of the 28-storey MGM Grand Macau hotel-casino resort worth $975 million.


Singapore

Sole mandated lead arranger Standard Chartered is yet to close the books for Parkway HoldingsÆ S$400 million ($252 million) facility. Thus far, the facility has secured commitments from 12 banks with several banks said to be in the final stage of gaining credit approvals. The financing has received a resounding response from general syndication, according to bankers close to the deal. Bank responses are due by end of the week.


South Korea

Hana Bank has successfully raised $200 million via mandated lead arrangers Standard Chartered (Hong Kong), Lloyds TSB Bank, Bank of China (Hong Kong) and United Overseas Bank. The one-year bridge facility saw four banks join in general syndication.

Among the mandated lead arrangers, Standard Chartered (Hong Kong) took $104 million, Lloyds TSB Bank lent $21 million while Bank of China (Hong Kong) and United Overseas Bank contributed $20 million each.

Three others û Banco Nacional Ultramarino, Banco Popolare di Verona e Novara (London) and Banque et Caisse dÆEpargne de LÆEtat (Luxembourg) û joined as arrangers with holds of $10 million apiece. Joining as a co-arranger is DnB NOR Bank pledging $5 million.

The facility offers a top level all-in of 12bp over Libor. Standard Chartered ran the books on a sole basis and proceeds will be used for general corporate purposes.


The $50 million loan-style FRN for Shinhan Card has been completed via joint lead arrangers Commonwealth Bank of Australia and Shinhan Finance. The three-year facility features a margin of 35bp over six-month Libor, translating to a top level all-in of 42bp over Libor.

Commonwealth Bank of Australia ended up with $20 million, while DBS Bank lent $15 million, ICBC (Seoul) committed $10 million and Mizuho Corporate Bank held $5 million.

Taiwan

Syndication of Chung Hung Steel CorpÆs NT$12 billion ($365 million) facility has yet to close. The loan comprises a NT$6 billion term portion, a NT$4 billion revolver and a NT$2 billion guarantee facility. The fundraising has received an enthusiastic response and is likely to be increased to NT$14 billion said bankers in the arranger group.


Sole mandated lead arranger Industrial Bank of Taiwan is yet to close the books for Der Chao ConstructionÆs NT$3.2 billion ($97.4 million) financing.

So far, the facility has received two more commitments from Shin Kong Commercial Bank and Hua Nan Commercial Bank, leading to a total of seven banks having joined in general syndication. They are Bowa Commercial Bank, China United Trust & Investment Corp, EnTie Commercial Bank, Far Glory Life Insurance and Hsinchu International Bank.

The five year facility is priced at 135bp over the CP rate and proceeds will be used to refinance existing debt. Banks have until next week to respond.


A consortium of nine banks has bagged the mandate for Far Eastern ConstructionÆs NT$4 billion ($121 million) facility. The mandated lead arrangers are Chiao Tung Bank, Chinatrust Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, International Commercial Bank of China, Ta Chong Bank, Taipei Fubon Commercial Bank, Taishin International Bank and Far Eastern International Bank.

The loan is split into a NT$2 billion revolver, a NT$1 billion term portion and a NT$1 billion guarantee facility. The loan is likely to close on a club basis, according to bankers in the arranger group. Proceeds will be used to repay existing debt and for the construction of a shopping mall in Taipei.


Hai Kwang EnterpriseÆ NT$1.8 billion ($55 million) dual tranche facility has secured its first commitment from Land Bank of Taiwan. The facility carries a margin of 104.8bp over the postal savings deposit rate.

Proceeds will be used to refinance an existing facility that was signed in March 2004 and for working capital purposes.


Allocations for King Long Technology (Suzhou)Æs $55 million credit have been finalised. A total of six banks are participating in the deal.

Mandated co-ordinating arranger ABN AMRO pledged $10 million and was joined by ICBC with a hold of $12 million as equal status co-ordinating arranger. Arrangers include Agricultural Bank of China and China Construction Bank with tickets of $10 million each. Joining as senior managers are Bank of East Asia and China Citic Bank providing $8 million and $5 million respectively.

King Yuan Electronics is providing a guarantee and proceeds will be used to refinance existing debt and to provide for working capital requirements. Signing took place last Friday (July 21).


Sole mandated lead arranger Taipei Fubon Commercial Bank is yet to complete syndication of Leading Profit and Double TechÆs $50 million facility. The three-year revolver has so far received commitments from International Commercial Bank of China and Shanghai Commercial & Savings Bank. Askey Computer Corp is acting as the guarantor. Proceeds will be used to refinance an existing facility that was signed in August 2005 and for working capital purposes.


Consumer products manufacturer Sampo Corporation has successfully raised NT$6 billion ($182 million) via a total of 15 banks. The loan is split into a NT$3.1 billion five-year term portion, a NT$1.6 billion three-year revolver and a NT$1.3 billion three-year guarantee facility.

Among the mandated co-ordinating arrangers and bookrunners, Chang Hwa Commercial Bank lent NT$750 million while four others û Chinatrust Commercial Bank, Taishin International Bank, Ta Chong Commercial Bank and Far Eastern International Bank û joined with tickets of NT$600 million each.

Joining as co-arrangers are International Bills Financial Corporation and Chung Hsin Bills Finance Corporation with holds of NT$500 million apiece. Three other arrangers are Hua Nan Commercial Bank taking NT$400 million and Shin Kong Commercial Bank and Taiwan Finance Corporation pledging NT$300 million each.

Lead managers include Bank of Taiwan and Central Trust of China, contributing NT$200 million apiece, and Bank of Panhsin and Chiao Tung Bank ending up with commitments of NT$150 million and NT$100 million respectively. The signing took place on July 21.


The NT$4 billion ($121 million) fundraising for Taiwan Kolin has been completed via sole mandated arranger Bank of Taiwan. The financing has been upsized from NT$3.5 billion due to overwhelming response in syndication.

The five-year facility saw 12 banks participate in general syndication. They are Agricultural Bank of Taiwan, Central Trust of China, Chiao Tung Bank, China United Trust & Investment Corp, Chinese Bank, Hua Nan Commercial Bank, Hwa Tai Bank, Industrial Bank of Taiwan, Jih Sun International Bank, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Sunny Bank.

Proceeds will be used to refinance a NT$2.5 billion facility that was signed in March 2005 and for working capital purposes. Signing was held on July 20.

¬ Haymarket Media Limited. All rights reserved.

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