Loan Week, June 1-7

A roundup of the latest syndicated loan market news.

Beach PetroleumÆs A$300 million dual tranche revolving credit has been completed as a club via Commonwealth Bank of Australia and Societe Generale Australia, both of which took A$150 million each.

The facility carries a tenor of three years and the funds are to refinance existing debt.


China Southern AirlinesÆ $107 million 14 year facility was signed on May 24 via sole mandated lead arranger DBS Bank.

Syndication saw only Bank of China (Tokyo Branch) joining as a participant.

The deal has an average life of seven years and proceeds are to finance the purchase of four Boeing aircraft.

China Development Bank and Korea Development Bank have been mandated for Hynix-ST Semi Conductor WuxiÆs $650 million bridge loan with the tenor undecided at either six or 12 months.

The purpose of the loan is to fund the purchase of machinery and is targeted to launch in mid June.

The loan is separate to the current $750 million five year facility which also has China Development Bank and Korea Development Bank as lead arrangers. Proceeds are to fund the construction of the second phase of the wafer plant project.

Sub-underwriting for Tianrui Cement is slated to close at the end of the week. The RMB3 billion five year multi-tranche term loan has been oversubscribed and saw Agricultural Bank of China, Citic Industrial Bank, ING Bank, International Finance Corp, Societe General join original mandated arranger JPMorgan at the top.

A few banks in China are still getting their approvals processed. General syndication is expected to be launched next week.

Hong Kong

HSBC has launched Citic SecuritiesÆ HK$500 million revolver into general syndication. The deal pays a margin of 95bp over Hibor and will be used for working capital purposes.

Arrangers joining with commitments of HK$70 million or above get an upfront fee of 35bp for a top level all-in of 106.7bp, co-arrangers lending HK$50 million to HK$65 million receive 25bp for an all-in of 103.3bp, and senior managers taking between HK$30 million and HK$45 million earn 15bp for an all-in of 100bp.

Banks are expected to respond by June 15.

Syndication is still ongoing for HKR InternationalÆs HK$2 billion five year revolver via mandated arrangers Calyon, HSBC and Standard Chartered.

Banks have been invited to join on three levels. Arrangers lending HK$200 million or more get a management fee of 45bp for an all-in of 43bp, co-arrangers committing between HK$150 million and HK$195 million receive 40bp for an all-in of 42bp while lead managers holding between HK$75 million and HK$145 million get 35bp for all-in of 41bp.

Proceeds are to refinance an existing facility signed in October 2002. Banks have until tomorrow (June 8) to respond.

Union King (Hong Kong)Æs HK$3 billion dual tranche fundraising has been inked on a club basis via a syndicate of ten banks.

The deal comprises a HK$2 billion term loan and a HK$1 billion revolver. It features a spread of 32bp over Hibor and carries a tenor of four years.

Bank of China, China Construction Bank, DBS Bank, HSBC and Industrial and Commercial Bank of China committed HK$370 million each while Chong Hing Bank, Sumitomo Mitsui Banking Corp and Wing Lung Bank took $250 million apiece. Bangkok Bank and Standard Chartered Bank ended up with HK$200 million each.

Nan Fung Development, Nan Fung Textiles, K Wah International Holdings and Sino Land acted as guarantors in the facility.

United Asia FinanceÆs HK$1.5 billion three year term loan, which saw six commitments in sub-underwriting, has launched into general syndication. Bank of Communications, Bank of East Asia, First Commercial Bank, Fubon Bank, Mizuho Corporate Bank and Taishin International Bank joined sole mandated arranger Standard Chartered as mandated arrangers.

The facility amount has been lowered from HK$1.7 billion by the borrower. It features a spread of 70bp over Hibor.

Banks have been invited to join on three tiers. Arrangers committing HK$130 million or above receive a participation fee of 30bp for an all-in of 80bp while senior managers holding between HK$100 million and HK$120 million get 27bp for an all-in of 79bp. Managers providing between HK$70 million and HK$90 million gain 24bp for an all-in of 78bp.

Banks are slated to revert by June 15.

Housing Development Finance CorpÆs $125 million one year financing has been closed and upsized from $100 million due to heavy oversubscription. A consortium of 16 banks lent to the loan.

Mandated arrangers Natixis provided $13 million while DZ Bank, RZB, BayernLB and Intesa Sanpaolo committed $10 million apiece. Bank of America and DBS Bank took $8.5 million each.

Arrangers Bank of Austria Creditanstalt and Erste Bank contributed $8 million each while Banques des Mascareignes and WGZ Bank held $7 million apiece.

Unicredito Italiano and co-arrangers Banca Monte dei Paschi di Siena, Banco Popolare di Verona e Novara, Export-Import Bank of China and Oversea-Banking Corp pledged $5 million each.

The signing ceremony is slated to take place on June 21.

JBF IndustriesÆ $40 million five year credit was signed via a syndicate of seven banks on June 4.

Mandated arrangers Bank of India, Lehman Brothers and State Bank of India took $9 million each while lenders SBI International (Mauritius) held $5 million. E. Sun Commercial Bank and EnTie Commercial Bank provided $3 million apiece while Hua Nan Commercial Bank ended up with $2 million.

The facility carries a margin of 190bp over Libor.

Pacific First ShippingÆs $170 million ship financing lead arranged by ICICI Bank has received two commitments so far with United Overseas Bank and DVB Bank holding commitments of $25 million apiece.

Syndication is targeted to close in mid June.

Reliance Communications has mandated ABN AMRO, Barclays Capital, BNP Paribas, Calyon, HSBC, Mizuho Corporate Bank and Standard Chartered Bank for its $1 billion term loan.

Both sub-underwriting and general syndication are expected to launch simultaneously by the end of the week.

The deal has an average life of five years with a door-to-door of six years.

Proceeds are for working capital expenditure.


Pacific Oil & GasÆ $180 million dual-tranche credit was signed via mandated arrangers Credit Suisse and Lehman Brothers.

The fundraising is split into a $120 million senior tranche and a $60 million junior portion. Both have a tenor of five years, with an average life of 3.5 years and offer a margin of 300bp over Libor.

Fee details and full syndication were undisclosed, but it is known that nine other lenders joined. As syndication was oversubscribed, allocations from lenders were scaled back.

Proceeds are to fund a 25% investment in Jambi-Merang oil and gas.


ANZ Investment Bank, Banc of America Securities Asia, Barclays Capital, Deutsche Bank and UBS have been mandated to arrange a $2.75 billion fundraising for Melco PBL Entertainment.


A $190 million three year term loan for YTL Utilities Finance Two was signed on May 30 via a syndicate of 10 banks. The bullet facility was oversubscribed and upsized from $170 million due to an enthusiastic market response.

Final allocations saw mandated arrangers Sumitomo Mitsui Banking Corp providing $30 million with BayernLB, DZ Bank and Fortis Bank committing $20 million apiece. BNP Paribas took $15 million with Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank and Oversea-Chinese Banking Corp contributing $14 million each. Both Citibank (Malaysia) and Citibank (Labuan) jointly held $4 million with Calyon giving $5 million.

Coming in as lead arrangers were Banco Bilbao Vizcaya Argentaria (BBVA) providing $18.5 million and Societe Generale (Asia) holding $5.5 million. Royal Bank of Scotland took $10 million as a senior manager.

Proceeds are for general corporate purposes.


Sole mandated arranger Citigroup has funded Kashf FoundationÆs $22 million multi-tranche facility, a landmark transaction in the microfinance sector.

The financing is divided into a $6 million five year loan, tranche æAÆ, an $8 million seven year facility, tranche æBÆ, and an $8 million three year portion, tranche æCÆ.

Tranches æAÆ and æBÆ have closed in April as bilateral loans provided by Citigroup. Overseas Private Investment Corp (OPIC) was the guarantor for tranche æAÆ, providing political risk insurance.

The commercial loan facility, tranche æCÆ was syndicated to domestic banks in Pakistan, with Citigroup, Habib Bank and MCB Bank acting as joint lead arrangers. Syndication was closed on May 31 and saw ABN AMRO joining as a participant.

Final allocations saw Habib Bank and MCB Bank committing $2.5 million apiece with ABN AMRO providing $3 million.

Proceeds are to support and provide for microfinance services.


HSBC and Oversea-Chinese Banking Corp have launched a S$100 million equivalent dual tranche fundraising for GP Industries.

The three year facility is split into a S$60 million loan and a $25 million portion, featuring a spread of 80bp over Sibor and Libor.

Sole mandated arranger ICICI Bank has funded a $175 million 10 year ship financing for Mercator Lines (Singapore) on June 5.

General syndication will be launched on June 11. The deal features an average life of 6 years and pays a margin of 95bp over Libor.

The funds are to support the purchase of three bulk carriers.

A $1 billion three year revolving credit facility has been launched into general syndication for Noble Group via mandated arrangers ABN AMRO, ANZ Investment Bank, Fortis Bank, ING Bank, Royal Bank of Scotland, Societe Generale and Standard Chartered.

A bank presentation was held on June 5 in Hong Kong to which there was an enthusiastic response with almost 90 bankers attending. More presentations are to be held in Dubai, Seoul and Taipei.

The bullet facility features a spread of 60bp over Libor.

Banks have been invited to join on four levels. Mandated lead arrangers committing $80 million or above receive an upfront fee of 42bp for a top level all-in of 74bp, arrangers lending between $60 million and $80 million get 36bp for an all-in of 72bp, co-arrangers providing $20 million to $60 million gain 33bp for an all-in of 71bp, and lead managers holding $10 million to $20 million earn 30bp for an all-in of 70bp.

An $850 million one year financing for Want Want Holdings has been mandated to BNP Paribas, Goldman Sachs and UBS.

The loan will be used to back the privatisation of the listed company.


A NT$3 billion five year revolver for VIA Technologies has been inked via mandated arrangers Chinatrust Commercial Bank and China Development Industrial Bank.

The mandated arrangers committed NT$1 billion apiece while lead managers Land Bank of Taiwan and Taishin International Bank took NT$500 million each.

The deal carries a margin of 50bp over the secondary CP rate. Proceeds are to refinance existing debt and for working capital purposes. Chen Wen Qi is providing a guarantee.

Wintech MicroelectronicsÆ NT$3.3 billion five year revolving credit has been signed via mandated arrangers and bookrunners Hua Nan Commercial Bank and Mega International Commercial Bank.

The financing carries a margin of 52bp over the 30, 60, 90, 120 or 180 day Primary CP rate, with a commitment fee of 10bp.

Syndication saw bookrunners Mega International Commercial Bank contributing NT$600 million and Hua Nan Commercial Bank providing NT$400 million. Coming in as senior managers were Land Bank of Taiwan, Bank of Taiwan and Taiwan Cooperative Bank contributing NT$300 million, NT$250 million and NT$230 million respectively. Bank of Kaohsiung, Central Trust of China, Chang Hwa Commercial Bank and Taishin International Bank held NT$200 million apiece.

Managers Shanghai Commercial & Saving Bank took NT$120 million with E.Sun Bank, First Commercial Bank and Industrial Bank of Taiwan pledging NT$100 million each. Sunny Bank, Taichung Bank and Taiwan Business Bank also ended up holding NT$100 million apiece.

Proceeds are for working capital expenditure and to refinance existing debt.


Vietnam Shipbuilding Industry (Vinashin) CorpÆs $600 million eight year facility has been completed via mandated arrangers Credit Suisse, DEPFA Bank and Maybank. The loan was significantly oversubscribed and increased from $200 million.

The deal offers a margin of 150bp over Libor with an average life of 5.75 years and a grace period of 11 years and three months.

Reports indicate that syndication saw about 22 to 24 banks joining, however full allocations and syndicate details are undisclosed.

Fees to the market were on three levels. Mandated arrangers contributing $50 million or more received a management fee of 25bp, arrangers with commitments between $25 million and $50 million got 15bp while co-arrangers holding between $10 million and $25 million took 10bp.

Proceeds are to provide for general corporate requirements.

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