Loan week, June 19-25

A roundup of the latest syndicated loan market news.


Daiwa House (Suzhou) Real Estate Development's Rmb400 million three-year term loan has been signed via sole mandated lead arranger and bookrunner Sumitomo Mitsui Banking Corp. Agricultural Bank of China, Bank of China and Industrial & Commercial Bank of China joined as lead arrangers.

The financing is priced at 90% of the PBOC rate and proceeds are to support a project in Suzhou, China.

A Rmb12.8 billion 10-year fundraising for Honghua-Airport District Development & Construction Headquarter has been completed via sole mandated lead arranger and bookrunner Industrial & Commercial Bank of China. Other lenders coming in as participants include Bank of China, Bank of Communications, Bank of Shanghai, China Construction Bank, China Everbright Bank, China Merchants Bank, China Minsheng Banking Corp and Shanghai Pudong Development Bank.

Proceeds are to fund the relocation of the Dajiaochang airport in Nanjing, China.

Hong Kong

Yau Lee Construction's HK$260 million revolving credit has been signed via coordinating arrangers BNP Paribas, Hang Seng Bank and Nanyang Commercial Bank, with ICBC Asia and Bank of East Asia joining in as arrangers.

The deal is guaranteed by Yau Lee Holdings and proceeds are to amend the covenants in the borrower's existing financings.


A Rs16.5 billion transaction for Jaiprakash Power Ventures was sealed on June 23 via sole mandated lead arranger State Bank of India. The 14 year term loan is priced at 25bp over SBAR.

Final allocations saw the lead contribute Rs4.8 billion, while participant Oriental Bank of Commerce provided Rs2.4 billion. Allahabad Bank, Bank of India and Dena Bank gave Rs1.9 billion apiece, and Andhra Bank, State Bank of Bikaner & Jaipur, State Bank of Patiala and State Bank of Travancore each lent Rs940 million.

Proceeds are to finance a hydropower project in Vishnuprayag, India.

Pink City Expressways' Rs19 billion term loan was completed last week through mandated lead arrangers Axis Bank and IDBI Bank.

The 15 year financing pays an all-in fee of close to 13%.

Final allocations saw IDBI Bank lend Rs2.8 billion, while Axis Bank gave Rs1.4 billion. Participant India Infrastructure Finance pledged Rs2.8 billion and Bank of India, Canara Bank and Punjab National Bank contributed Rs1.6 billion apiece. Union Bank of India offered Rs1.2 billion, while Allahabad Bank, Andhra Bank, Dena Bank, State Bank of Bikaner & Jaipur, State Bank of Hyderabad and United Bank of India committed Rs1 billion each.

Proceeds are for project financing purposes.

Volkswagen India's €135 million debt package is ongoing in syndication via sole bookrunner International Finance Corporation.

The deal comprises a €60 million nine-year loan (tranche A) solely provided by IFC, and a €75 million five-year-and-seven-month loan (tranche B) provided by commercial banks. The facility is guaranteed by the parent company, Volkswagen.

Proceeds are to finance the construction of a production plant in Pune, India.


A Rp3.5 trillion financing for Semen Tonasa was inked on June 22 via sole mandated lead arranger and bookrunner Bank Mandiri.

The 10-year transaction, guaranteed by Semen Gresik, has an annual interest rate of 12%.

Final allocations saw the lead commit Rp2.4 trillion, while participants Bank Rakyat Indonesia, BPD Jawa Timur and BPD Sulawesi Selatan ended up with Rp1 trillion, Rp100 billion and Rp15 billion respectively.

Proceeds are for expansion purposes.


Apollo (Macao Commercial Offshore)'s $37.3 million facility has been completed on a club basis via mandated lead arrangers Bank of Taiwan, Chinatrust Commercial Bank, EnTie Commercial Bank, HSBC, Mega International Commercial Bank and RBS.

Secured by shares, the 3.25-year term loan features a spread of 200bp over Libor.

Among the coordinating arrangers, Bank of Taiwan committed $8.4 million, EnTie Commercial Bank $8 million, HSBC $7.3 million, Chinatrust Commercial Bank $6.5 million, RBS $3.8 million, and Mega International Commercial Bank provided $3.3 million.

Proceeds are for refinancing purposes.


Syndication of a S$275 million credit for Ascendas Real Estate Investment (A-REIT) has been launched via bookrunners ANZ, Natixis, Oversea-Chinese Banking Corp and Standard Chartered Bank.

The margin for the three-year deal ranges from 225bp to 275bp based on the borrower's rating.

Banks are invited on three levels - mandated lead arrangers with tickets of S$30 million get 120bp, while lead arrangers with S$20 million tickets earn 90bp. Arrangers coming in with S$10 million receive 60bp.

Proceeds are to refinance CMBS facilities due in December 2009. Responses are expected in mid-July.

An $820 million 364-day revolving credit for Vitol Asia was upsized from $525 million and completed on June 24 via a consortium of 17 mandated lead arrangers.

Original lead arrangers and bookrunners DBS, ING, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and United Overseas Bank each contributed $75 million, while Commonwealth Bank of Australia, KBC Bank, Oversea-Chinese Banking Corp and joint lead arrangers HSBC committed $50 million apiece.

Agricultural Bank of China, Bank of China, Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank, Mega International Commercial Bank, National Australia Bank, Union de Banques Arabes et Francaises UBAF and Westpac came in with $20 million tickets.

Arrangers Land Bank of Taiwan came in with $15 million, while Arab Bank, Bank of East Asia, Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank and Intesa Sanpaolo held $10 million each.

Guaranteed by Vitol Holding, the deal features a margin of 125bp over Libor. Proceeds are to refinance a $625 million one-year facility signed in July 2008.

South Korea

Hyundai Steel's ¥24 billion seven-year financing was signed yesterday via a consortium of six banks on a club basis.

Allocations saw Citi lend ¥8 billion, while Calyon gave ¥4 billion. Mizuho Corporate Bank, HSBC and BBVA pledged ¥3.8 billion, ¥3.2 billion and ¥3 billion respectively, while Landesbank Baden-Wuerttemberg (LBBW) ended up with a ¥2 billion ticket.

Proceeds are for capital expenditures in connection with the borrower's new integrated steel mill project in Dangjin, South Korea.


Advanced Semiconductor Engineering's NT$12 billion facility is expected to sign on Monday (June 29) via a consortium of 15 bookrunners and mandated lead arrangers led by Citi. The facility was upsized from NT$10 billion after being oversubscribed to NT$17.7 billion.

The transaction comprises two five-year term loans of NT$7.2 billion and NT$4.8 billion. Pricing is split into three tiers based on a net income-to-sales ratio over the 90-day secondary CP rate. If the ratio is below 0%, the margin is priced at 110bp; between 0% and 2.9% pays a spread of 100bp and if greater than 3%, the margin is priced at 85bp. There is a pricing floor of 1.9% effective for the first 12 months after the draw down.

Final allocation saw the original mandated lead arrangers Bank of Taiwan, Calyon, Citi, First Commercial Bank and Taipei Fubon Commercial Bank contribute NT$1 billion apiece. Cathay United Bank, Chang Hwa Commercial Bank, China Development Industrial Bank, Chinatrust Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank, Taiwan Cooperative Bank and Yuanta Commercial Bank each pledged NT$650 million to join as equal status arrangers. Participants Bank of Tokyo-Mitsubishi UFJ committed NT$500 million, while Shin Kong Commercial Bank and Shanghai Commercial & Savings Bank came in with NT$350 million apiece.

Proceeds are for refinancing and working capital purposes.

Coxon Precise Industrial's NT$1.5 billion fundraising launched in November last year was re-launched in April and sealed successfully last week via a consortium of 10 coordinating arrangers led by Hua Nan Commercial Bank. The size of the facility was initially adjusted to NT$1 billion, but the facility was oversubscribed and upsized again to NT$1.2 billion.

The three-year debt package comprises an NT$840 million term loan and a NT$360 million revolving credit. Both tranches offer a spread of 100bp over the 90-day primary CP rate with a commitment fee of 20bp and a two-year extension option. The primary CP rate floor is 1.35%.

Allocations saw mandated leads Hua Nan Commercial Bank pledge NT$200 million, while DBS and Yuanta Commercial Bank lent NT$125 million each. Chinatrust Commercial Bank gave NT$120 million, and Land Bank of Taiwan, Shanghai Commercial & Savings Bank, Shin King Commercial Bank, Taipei Fubon Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank came in with NT$90 million apiece. Participant Chang Hwa Commercial Bank rounded off the syndicate with NT$90 million.

Proceeds are for working capital and general corporate purposes.

The amendment of Da Yeh Development's NT$3.02 billion term loan facility initially completed in 1992 is expected to sign via sole bookrunner Cathay United Bank today (June 26).

The tenor of the facility has been extended by five years, while the pricing has been changed to 2.5% for the first six months and increased to 200bp over the average savings rate of Cathay United Bank and Chinatrust Commercial Bank for the remaining period. The facility will now mature in June 2014.

The bookrunner lent NT$2.55 billion, while Chinatrust Commercial Bank came in with NT$467 million. Proceeds are for building construction purposes.

Syndication of Eva Airways' NT$12 billion-equivalent term loan facility is expected to close next Monday via bookrunner First Commercial Bank.

The 12-year term loan is split into a NT$6 billion tranche borrowed directly by Eva Airways and a $180 million portion borrowed through an SPV.

First Commercial Bank has received commitments from Chang Hwa Commercial Bank, Entie Commercial Bank, E.Sun Commercial Bank, Export-Import Bank of Taiwan, Hua Nan Commercial Bank and Yuanta Commercial Bank.

The proceeds will be used to purchase aircraft.


Maxxis International (Thailand)'s $80 million financing was inked last week via sole bookrunner First Commercial Bank. The facility was oversubscribed by 81% to $145 million but was not upsized.

Guaranteed by the parent, Cheng Shin Rubber Industry, the five-year term loan is priced at 100bp over three-month or six-month Libor.

Final allocations saw bookrunner First Commercial Bank and mandated lead DBS contribute $15 million each, while E.Sun Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Shanghai Commercial & Savings Bank and Taiwan Cooperative Bank committed $9 million apiece. Chang Hwa Commercial Bank pledged $5 million to join as a lead arranger.

Proceeds are to expand production capacity and for working capital purposes.


Syndication of Vinacomin's $300 million debt package was launched yesterday via mandated lead arrangers and bookrunners BNP Paribas, Calyon, Credit Suisse, Mitsubishi UFJ Financial Group, Natixis, Societe Generale and Standard Chartered Bank.

The five-year deal is priced at 350bp over Libor.

Proceeds are for general corporate purposes. The deal is Vinacomin's debut loan in the offshore market. 

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