Loan Week, June 23 - June 30

A round up of the latest syndicated loan market news.

Commander Communications signed its A$340 million dual tranche financing on June 30. Westpac was the sole mandated arranger.

Westpac committed A$150 million while Commonwealth Bank of Australia and National Australia Bank contributed A$95 million each. Proceeds are for general corporate purposes.

Southern Cross Broadcasting (Australia)Æs A$275 million credit signed on June 30. Mandated arranger ANZ Bank ended up with a A$165 million commitment while managers Commonwealth Bank of Australia and National Australia bank provided A$55 million apiece.

Proceeds are to refinance existing debt and for general corporate and working capital purposes.


The Rmb6.1 billion equivalent dual tranche 10 year financing for Bayer Polyurethane (Shanghai) has been allocated via mandated lead arrangers HSBC, Standard Chartered, China Construction Bank (Shanghai) and ICBC (Shanghai). The four mandated arrangers lent Rmb550 million apiece.

A total of 12 banks joined as arrangers with commitments of Rmb325 million each. They are Agricultural Bank of China (Shanghai), Bank of Communications (Shanghai), Bank of Shanghai, BayernLB (Shanghai), BNP Paribas (Beijing), Citibank (Shanghai), Calyon (Shanghai), China Merchants Bank (Shanghai Wai Tan), Commerzbank (Shanghai), Deutsche Bank (Shanghai), Shanghai Pudong Development Bank (Shanghai) and SMBC (Shanghai).

The facility is guaranteed by Bayer China and the parent company, Bayer AG. It is split between a Rmb4.82 billion tranche æAÆ and a $160 million tranche æBÆ. Signing took place last Friday (June 30).

Sole mandated lead arranger Standard Chartered has launched China National Chemical Corp (ChemChina)Æs A$193.75 million multi-tranche fundraising into senior syndication.

The financing is split between a A$113 million equivalent tranche æAÆ, a A$50 million tranche æBÆ and a $30 million three year tranche æCÆ. The six year tranche æAÆ facility offers a margin of 170bp over the bank bill swap rate (BBSW)/Libor while tranches æBÆ and æCÆ are priced at 150bp over BBSW.

Proceeds will be used to finance the acquisition of an Australian polyethylene manufacturer from Exxon Mobile. Banks have until July 17 to respond.

Market talk is that Datang International Power Generation and Datong Coal Mine are seeking a project financing from banks. The borrowing will be used to fund the construction of two power plants in Shanxi province worth HK$5.26 billion. Datang International Power Generation is the second largest Hong Kong listed mainland electricity producer while Datong Coal Mine is ChinaÆs second largest coal producer.

Hong Kong

The HK$1.265 billion dual tranche facility for Asia Container Terminals has signed. Mandated arrangers Calyon, DBS Bank, HSBC and Standard Chartered Bank contributed HK$316.25 million apiece.

The five year loan is split into a HK$1 billion term facility and a HK$265 million revolving credit. The deal offers a margin of 43bp over Hibor. Proceeds will be used to refinance an existing project finance facility.

Syndication for Champion REITÆs HK$7.2 billion five year fundraising has yet to close with several banks said to be in the final stages of gaining credit approval. Bank of China, Bank of East Asia, Citigroup, Hang Seng Bank, HSBC, ICBC Asia, JP Morgan and SMBC are leading the deal. Banks are expected to revert by today (Friday).

China Resources LandÆs HK$2.4 billion loan has a received commitment from Bank of Tokyo-Mitsubishi UFJ. Around 10 banks are in the process of gaining credit approvals.
The facility size may be increased to HK$2.5 billion due to a resounding response from the market according to bankers close to the deal.

Bank of China (Hong Kong), Calyon, DBS Bank, HSBC and Standard Chartered are leading the deal. The facility is expected to close next Wednesday and signing is targeted for mid-July.

A consortium of 19 banks has bagged the mandate for Henderson Land DevelopmentÆs HK$12.2 billion facility which has been further upsized from HK$10 billion. The three year financing was launched into general syndication on Tuesday (July 4).

The arranger group comprises Agricultural Bank of China, Bank of China (Hong Kong), Bank of East Asia, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, BayernLB, Calyon, CCB International Finance, Citigroup, DBS Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, OCBC, Rabobank, Royal Bank of Scotland, Fortis Bank, Standard Chartered and SMBC.

Banks are being invited to join as managers and senior managers. Pricing is said to be around the low 30s and the facility will be the largest amount raised in Hong Kong this year-to-date. Proceeds will be used for working capital purposes and to refinance a HK$10 billion five year loan signed in September 2004. Banks responses are due by July 17.

Mandated lead arrangers Rabobank, Hang Seng Bank and HSBC closed the books for Pacific Andes International HoldingsÆ $120 million multi-tranche financing on Tuesday (June 4). The facility has received an overwhelming response in general syndication. More than 16 banks joined with the total subscription in excess of $120 million. The arrangers are in talks with the borrower to decide whether to increase the facility size or scale back the tickets from each bank. Signing is targeted for mid-July.

Sole mandated lead arranger UBS has launched Viasystem Kalex Printed Circuit Board, Viasystems Asia Pacific and Kalex Circuit Board (China)Æs $125 million fundraising in order to expand the arranger group.

The facility comprises a $65 million portion and a $60 million revolving credit, featuring a spread of 150bp over Libor in sub-underwriting. The four year facility is guaranteed by the US based parent company Viasystems. Proceeds will be used for working capital purposes.

Banks responses are due by mid-July.

Calyon and ICICI Bank have been joined by DBS Bank in sub-underwriting for Indian Farmers Fertiliser CooperativeÆs Ñ28.625 billion 5+ year financing. The credit features an average life of 4.5 years and a margin of 75bp over Libor. The deadline for banks to respond is July 17.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, DBS Bank, Natexis Banques Populaires, RZB Austria and Standard Chartered closed the books for Union Bank of IndiaÆs $150 million yen-equivalent financing last Friday.

BBVA, Lloyds TSB, Industrial & Commercial Bank of China, Commerzbank and National Bank of Dubai have already committed and several others are still processing credit approvals. Allocations will be finalised shortly. Signing will take place in the week of July 17.


TuranAlemÆs $110 million one year fundraising was signed on June 30 via mandated arrangers Bank of Tokyo-Mitsubishi UFJ, Kookmin Bank, and Taiwan Cooperative Bank (Offshore Banking). Bank of Tokyo-Mitsubishi UFJ was the sole bookrunner and TuranAlem Finance is providing a guarantee.

The deal offers a margin of 40bp over Libor. Proceeds are for working capital purposes.


Chartered Semiconductor Manufacturing signed its $200 million 364 day loan on June 30 via sole mandated arranger SMBC.

Mandated arranger SMBC took $150 million while lead manager Bayerische Hypo-und Vereinsbank (Singapore) committed $25 million. Arranger WestLB (Singapore) offered $17 million while co-arranger Societe Generale (Singapore) provided $8 million.

Proceeds are for general corporate purposes.

Joint mandated coordinating arrangers BNP Paribas and OCBC have completed the S$260 million financing for RCMS Properties. The five year facility saw 13 banks join in general syndication. The loan comprises a S$135 million transferable term portion and a S$125 million loan, both featuring a margin of 75bp over the Singapore dollar swap offer rate.

BNP Paribas and OCBC are taking S$60 million each. Joining as lead arrangers are Malayan Banking lending S$38 million, and Bank of China (Singapore) and Bank of East Asia holding S$38 million and S$16 million respectively. Agricultural Bank of China (Singapore) and Bank of Taiwan (Singapore) are providing S$13 apiece and Industrial Bank of China (Singapore) is committing S$9 million.

Four other lead arrangers û Chang Hwa Commercial Bank, First Commercial Bank, International Commercial Bank of China (Singapore) and Land Bank of Taiwan (Singapore) û joined with tickets S$6.5 million each. Bank of Communications is also participating with a commitment of S$5 million and joined as an arranger.

The facility will be used to refinance an existing facility signed in October 2002 and for working capital purposes. Signing was held on Wednesday (July 5).

BenQ Corp inked its NT$12 billion financing yesterday (Thursday) with a consortium of 16 local banks. The loan received an enthusiastic response from the market and was increased from NT$10 billion.

Bookrunners Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and International Commercial Bank of China each held NT$1.65 billion. Hua Nan Commercial Bank took the title of co-arranger with a commitment of NT$1 billion.

Joining as lead managers are Hsinchu International Bank lending NT$800 million, Chang Hwa Commercial Bank, EnTie Commercial Bank, Land Bank of Taiwan and Taiwan Business Bank committing NT$500 million each and E.Sun Commercial Bank with a ticket of NT$300 million. Managers include Bank of Kaohsiung, Shin Kong Commercial Bank and Sunny Bank providing NT$300 million apiece, Far Eastern International Bank absorbing NT$250 million and Shanghai Commercial & Savings Bank contributing NT$150 million.

Der Chao ConstructionÆs NT$3.2 billion five year fundraising is progressing in syndication and has secured a commitment from China United Trust & Investment. Industrial Bank of Taiwan is leading the deal.

Banks that joined earlier include Bowa Commercial Bank, EnTie Commercial Bank, Far Glory Life Insurance and Hsinchu International Bank. More investors are finalising approvals and financial close is slated for mid-July.

Eva AirwaysÆ NT$10.4 billion dual tranche aircraft financing is scheduled to close syndication on July 21 as banks process credit approvals. Cathay United Bank, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, International Commercial Bank of China and Taipei Fubon Commercial Bank are the mandated lead arrangers.

Banks that are waiting for approvals include Bank of Overseas Chinese, Central Trust of China, Export-Import Bank of the Republic of China, Hsinchu International Bank, Land Bank of Taiwan, Shanghai Commercial & Savings Bank and Taiwan Business Bank. The loan offers a margin of 45bp over the secondary CP rate and a top level fee of 8bp.

A NT$1.8 billion five year dual tranche facility for Hai Kwang Enterprise Corp was launched into syndication on Tuesday. Chiao Tung Bank and Industrial Bank of Taiwan are leading the deal.

The financing is split into NT$1.5 billion and NT$300 million term loans. The tranches carry a margin of 104.8bp over the two year postal floating rate.

Fees to the market are on three levels. Co-arrangers lending NT$300 million or more receive 10bp flat, lead managers contributing NT$120 million to NT$299 million gain 8bp and lenders providing less than NT$120 million get 3bp.

The iron and steel products manufacturer will use the funds to refinance an existing NT$1.07 billion loan that was completed in March 2004 with the balance to be used for the purchase of new equipment. The previous loan paid a margin of 300bp over the two year postal rate and a management fee of 10bp.

Hiwin Technologies Corp has mandated Bank of Taiwan, International Bank of Taipei, Land Bank of Taiwan and Taiwan Business Bank to lead arrange a NT$4.3 billion credit.

North Shore CorpÆs NT$2.6 billion financing is signing today (Friday). A total of eight banks are participating in the transaction.

Mandated lead arrangers International Commercial Bank of China and Taipei Fubon Commercial Bank held NT$500 million each. Lenders are Taiwan Cooperative Bank committing NT$350 million, Agricultural Bank of Taiwan and Central Trust of China pledging NT$300 million apiece, Export-Import Bank of the Republic of China contributing NT$250 million and Bank of Kaohsiung and Hua Nan Commercial Bank taking NT$200 million each.
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