Loan Week, June 23 - June 30

A round up of the latest syndicated loan market news.

Brisbane Airport Corporation has signed its A$100 million three year financing on a club basis on June 26. Mandated arrangers Bank of Tokyo-Mitsubishi UFJ, WestLB (Sydney) and Westpac committed A$100 million apiece. Brisbane Airport is providing a guarantee. Proceeds are for general corporate purposes and to refinance existing debt.

Fertiliser-maker Incitec PivotÆs A$420 million term facility is progressing in general syndication. The five year facility has received commitments from five banks. They are ANZ Bank, Commonwealth Bank of Australia, National Australia Bank, Westpac and Rabobank. Sole mandated lead arranger Credit Suisse has fully underwritten the facility. Proceeds will be used to support the acquisition of Southern Cross Fertilisers from BHP Billiton.

MMT Healthcare DistributionÆs dual tranche A$90.5 million loan was signed on June 22 via sole mandated arranger Westpac. MMT Healthcare is providing a guarantee.

The credit is split into two five year A$80.5 million term loans and a A$10 million revolver. Proceeds are for general corporate and acquisition purposes.

MyerÆs A$995 million multi-tranche facility has been launched into general syndication via Credit Suisse, Goldman Sachs JB Were and National Australia Bank. Around 20 banks from Australia, Hong Kong and Singapore have been invited to participate.

The six year facility is split into a A$675 million amortising term portion, a A$300 million revolver and a A$20 million capital expenditure facility. Proceeds will be used to support the A$1.4 billion Newbridge and Texas Pacific-led leveraged buyout of the Myer department store chain. The deal was fully underwritten in early June by the mandated lead arrangers.


The $425 million equivalent loan for AU Optronics (Suzhou) and AU Optronics (Xiamen) has been upsized from $50 million and Rmb1 billion ($300 million). ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, HSBC and Standard Chartered Bank are arranging the deal. Allocations will be finalised shortly.

China COSCO Holdings has sent out RFPs for a shipping loan to fund 70 percent of a recent purchase of eight new container vessels worth $516.8 million. China COSCOÆs subsidiary, COSCO Container Lines, recently raised $80.36 million via a 10 year term loan. That facility was arranged by ING, SG Asia, Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, China Construction Bank, Bank of Nova Scotia, Credit Industriel et Commercial, DnB NOR Bank, HSH Nordbank, ICBC, KfW, Mizuho, Banca Intesa and Overseas Chinese Bank.

Long Chen (Zhejian) Paper Factory has awarded the mandate for a $68 million five year loan to HSBC and Mizuho Corporate Bank. The borrowerÆs Taiwanese parent company, Long Chen Paper Corp last visited the market in April 2005 when it raised NT$1.2 billion. That facility was solely arranged by Taishin International Bank. Proceeds were used to refinance existing debt and provide for working capital requirements.

Hong Kong

The HK$2.26 billion 4 + year term loan for Chinese Estates Holdings (Tung Ying Commercial Building) was launched last Wednesday (June 21) via mandated lead arrangers Bank of China and Standard Chartered. The facility is guaranteed by Chinese Estates Holdings and is secured by the Tung Ying Commercial Building.

The facility carries a margin of 41bp over Hibor and is being marketed on three tiers. Co-arrangers providing HK$200 million to HK$300 million earn 52.2bp leading to a top level all-in of 52.6bp over Hibor. Arrangers lending HK$100 million to HK$199 million get 43.2bp for an all-in of 50.6bp over Hibor while lead managers taking HK$75 million to HK$99 million receive 36bp for an all-in of 49bp over Hibor.

Both mandated arrangers are running the books. Bank of China is the facility and documentation agent while Standard Chartered is acting as the security trustee. Proceeds will be used to fund the redevelopment of the Tung Ying Commercial Building.

Financial close is scheduled for July 12 and signing is targeted for the end of July.

Cliveden FinanceÆs HK$1.95 billion term facility was signed last Friday (June 23) in Hong Kong. Citigroup was the sole bookrunner. Mandated coordinating arrangers Citigroup and ICBC (Asia) ended up with HK$375 million each while Bangkok Bank and Shanghai Commercial Bank took HK$300 million apiece.

Arrangers were Liu Chong Hing Bank and Wing Lung Bank lending HK$200 million each while two others û Bank of Taiwan and Tai Fung Bank û joined as lead managers committing HK$100 million apiece. The five year facility is guaranteed by Boswell Holdings. Proceeds will be used to refinance a HK$1.75 billion facility signed in January 2002.

Market talk is that Link Reit is seeking a HK$6 billion credit from banks with syndication to take place shortly.

Sole mandated lead arranger Standard Chartered has launched Swire PacificÆs HK$3 billion five year loan into sub-underwriting to expand the arranger group. Sub-underwriters lending HK$600 million or above earn an underwriting fee of 5bp and an upfront fee of 20bp for a top level all-in of 34bp over Hibor and receive the title of mandated coordinating arranger.

The borrowerÆs subsidiary, Swire Finance, last tapped the market in August 2003 when it raised HK$2.3 billion via a five year revolver that offered a top level all-in of 54.5bp over Hibor. Banks have until July 5 to respond.

The $100 million yen equivalent facility for Corporation Bank has been closed. A total of five banks joined in general syndication. They are Banca Nazionale del Lavoro, Bank of China, Banca Intesa, Oversea-Chinese Banking Corp and United Overseas Bank.

The one year facility is being arranged by BNP Paribas, Calyon, DZ Bank, Lloyds TSB and Standard Chartered. Allocations will be finalised shortly. Signing will take place today (Friday).

JSW SteelÆs $200 million seven year credit will complete syndication on Friday (today). Aozora Asia Pacific Finance, Banque Cantonale Vaudoise, KBC Bank, KfW and Standard Chartered have so far committed to the deal. ABN AMRO is the mandated arranger. The financing offers a margin of 170bp over Libor. Proceeds are for trade financing purposes.

Shree Renuka SugarsÆ $50 million dual tranche facility has been upsized further from $40 million and has completed syndication. ABN AMRO, Bank of Baroda, Bank of India, Chang Hwa Commercial Bank, GE Commercial Finance, Indian bank and State Bank of India are leading the deal. Allocations will be finalised shortly and signing is expected to be held on July 7.

Tata Sons is heard to be sounding banks for financing. The borrower successfully raised $100 million in September 2003 via a five year facility that was led by Barclays Capital, Credit Agricole Indosuez, DBS Bank and State Bank of India. The deal offered an all-in of 117bp over Libor.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, DBS Bank, Natexis Banques Populaires, RZB Austria and Standard Chartered have further extended the deadline for Union Bank of IndiaÆs $150 million yen equivalent financing until early next week. Around four to five banks have already committed and several others are in the process of gaining approvals. The facility offers a top level all-in of 42bp over Libor.


Bank Ekspor Indonesia (Persero) has successfully raised $120 million from the market with a total of 15 banks participating. Mandated lead arrangers DBS Bank, HSH Nordbank (Singapore), Oversea-Chinese Banking Corp and SMBC lent $11 million each and were joined by Natexis Banques Populaires (Singapore) and RZB (Singapore) with commitments of $10.5 million apiece. Three others û BayernLB, RHB Bank (Labuan) and State Bank of India (Singapore) took $9 million each.

Joining as lead arrangers are Erste Bank and Sumitomo Trust & Banking (Singapore) committing $6 million apiece. Arrangers include Ausfuhrkredit-Gesellschaft (Frankfurt) and First Commercial Bank (Offshore Banking) committing $4.5 million each while Bank Muscat and lead manager Governor and Company of the Bank of Ireland took $4 million and $3 million respectively.

The borrower is a financial institution fully owned by the Indonesian Government. Proceeds will be used to finance export related facilities. Signing was held on Tuesday (June 27) in Singapore.

A $100 million dual tranche financing for Federal International Finance has completed syndication. Mandated arrangers Nederland Development Finance provided $25 million and ABN AMRO Bank lent $9.5 million.

Lead managers Erste Bank offered $15 million while three others - Bank of Tokyo-Mitsubishi UFJ, Bayerische Hypo-und Vereinsbank AG (Singapore) and Standard Bank Asia committed $9.5 million each. Managers State Bank of India (Singapore) pledged $7 million and Bank of India (Singapore), Bank Muscat International BSC and Krung Thai Bank took $5 million apiece.

The deal is split into a $25 million five year loan and a $75 million three year portion, with margins of 23bp and 18.5bp over Libor. Proceeds are for working capital purposes. Signing is expected to be held on July 10.


Natural resources company, MMC CorporationÆs M$7.5 billion term financing is scheduled to close today (Friday). The seven year facility was pre-funded in late February. HSBC (Malaysia) is the sole mandated lead arranger and bookrunner. Five other participants are RHB Bank, Oversea-Chinese Banking Corp (Malaysia), Kumpulan Wang Simpanan Pekerja, EON Bank and Bank of Tokyo-Mitsubishi UFJ. Proceeds will be used to partly finance the M$427 million acquisition of a 51.74% stake in Johor Port from Seaport Terminal and to finance MMCÆs mandatory general offer on the remaining 48.26% equity stake in Johor Port.


Joint mandated lead arrangers BNP Paribas and DBS Bank are yet to close HyfluxÆs $100 million dual tranche fundraising. Thus far, it has secured six commitments. The five year facility is split equally between a term loan and a revolver. Hydrochem Singapore is acting as the guarantor.
South Korea

Joint mandated lead arrangers Standard Chartered and Lloyds TSB Bank are still waiting for several more banks before closing the books for Hana BankÆs $200 million loan. Thus far, the one year facility has secured four commitments. Bank of China (Hong Kong) and United Overseas Bank joined at the top level while Banco Nacional Ultramarino and Banco Popolare di Verona e Novara joined as arrangers.

The deal is priced at 6bp over Hibor translating to a top level all-in of 12bp over Hibor. The facility was pre-funded on Tuesday (June 28) and drawdown will take place shortly. Standard Chartered is running the books on a sole basis. Proceeds will be used for general corporate purposes.

Shinhan CardÆs $50 million three year facility has been launched into general syndication via mandated arrangers Commonwealth Bank of Australia and Shinhan Finance.

The loan offers a margin of 35bp over Libor. Banks have been invited to join on three levels. Senior Managers committing $5 million or above gain an all-in of 42bp, managers contributing $2 million to $4 million receive 40bp. Banks have until mid-July to respond. Proceeds are for working capital purposes.


The NT$10 billion five year financing for BenQ Corp is set to complete syndication by today (Friday). Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and International Commercial Bank of China are the mandated lead arrangers.

Lenders so far include Hua Nan Commercial Bank, Chang Hwa Commercial Bank, EnTie Commercial Bank, Hsinchu International Bank, Land Bank of Taiwan, Taiwan Business Bank, Bank of Kaohsiung, E.Sun Commercial Bank, Shin Kong Commercial Bank, Far Eastern International Bank and Shanghai Commercial & Savings Bank. The final investor is expected to revert by the end of the week.

The deal offers a margin of 45bp over the secondary CP rate and a top level fee of 7bp. Proceeds are to provide for working capital requirements.

Chung Hung Steel Corp has verbally mandated a consortium of 10 banks to arrange a NT$12 billion multi-tranche financing. The banks are: Bank of Taiwan, Chiao Tung Bank, Chinatrust Commercial Bank, Industrial Bank of Taiwan, International Commercial Bank of China, Land Bank of Taiwan, Taipei Fubon Commercial Bank, Taishin International Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

The loan is split into a NT$6 billion seven year tranche, a NT$4 billion five year revolver and a NT$2 billion five year guarantee facility.

The steel manufacturer will use the proceeds to refinance a NT$6 billion facility that was signed in September last year and led by Chinatrust Commercial Bank, International Commercial Bank of China and Taishin International Bank. A formal mandate is expected next week with the lead banks planning to launch the deal towards the end of July.

Der Chao ConstructionÆs NT$3.2 billion five year fundraising has received a commitment from Hsinchu International Bank this week. Industrial Bank of Taiwan is arranging the deal.

Banks that joined earlier include Bowa Commercial Bank, EnTie Commercial Bank and Far Glory Life Insurance. The margin is 135bp over the 90 day primary CP rate and top level co-arrangers earn 15bp.

Etron Technology is syndicating a NT$2 billion five year multi-tranche credit via mandated lead arrangers Central Trust of China, Hsinchu International Bank, Hua Nan Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank.

The loan is split into a NT$1.2 billion term facility, a NT$500 million portion and a NT$300 million revolver. The spread is 38bp over Taiwan Cooperative BankÆs one year floating deposit rate.

Fees to the market are on two tiers. Participants lending NT$300 million or more gain 5bp flat and NT$100 million to NT$299 million receive 3bp. There is a commitment fee of 15bp.

Proceeds are to refinance existing debt and for working capital purposes. The borrower manufactures computer components.

North ShoreÆs NT$2.6 billion facility will sign next week. The syndicate comprises eight banks including mandated lead arrangers International Commercial Bank of China and Taipei Fubon Commercial Bank.

Taipei Fullerton HotelÆs NT$2.39 billion dual tranche loan is expected to reach financial close today (Friday). Taiwan Cooperative Bank is the sole bookrunner.

Taiwan Business Bank is the latest bank to join. Agricultural Bank of Taiwan, Asia Trust & Investment Corp, Bank of Panhsin, Central Union Trust & Investment, Cathay United Bank, Fuhwa Bank, Hsinchu International Bank, Hua Nan Commercial Bank, KingÆs Town Bank, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank, Taichung Commercial Bank and Taipei Fubon Commercial Bank joined earlier.

The NT$3.5 billion five year dual tranche financing for Taiwan Kolin has secured more banks in syndication. Bank of Taiwan is leading the deal.

The latest investors to join are Chiao Tung Bank, E.Sun Commercial Bank, Hwa Tai Bank, Shanghai Commercial & Savings Bank, Sunny Bank and Taiwan Business Bank. Chinese Bank and China United Trust & Investment joined earlier.

The loan is split into a NT$2 billion term facility and a NT$1.5 billion revolver. Both tranches offer a margin of 180bp over the 90 day primary CP rate and a top level fee of 12bp. Syndication close has been delayed due to management changes.

Teco Electronics & MachineryÆs NT$4 billion five year revolving credit was launched into syndication on Tuesday. Bank of Taiwan, First Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank are leading the deal.

The loan features a spread of 37.5bp over the primary CP rate and banks have been invited to participate on three levels. Lead managers committing NT$500 million or more earn 8bp flat, Managers lending NT$300 million to NT$499 million gain 5bp and lenders providing NT$200 million to NT$299 million receive 3bp. There is also a commitment fee of 12.5bp.

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