Loan Week, June 9 - June 16

A round up of the latest syndicated loan market news.

ElectraNetÆs A$200 million multi-tranche fundraising was completed on a club basis via mandated arrangers Commonwealth Bank of Australia and Westpac. The credit comprises A$120 million and A$60 million revolving credits and a A$20 million guarantee facility. Proceeds are for capital expenditure requirements, working capital and standby liquidity.


China Shipping Container LinesÆ $300 million financing was inked on June 9 with a syndicate of 15 banks. Citigroup ran the books on a sole basis while mandated lead arrangers include Agricultural Bank of China, Bank of China (Hong Kong), Bank of Communications (Hong Kong), Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, China Construction Bank (Hong Kong), ING Bank, Mizuho Corporate Bank, Rabobank, Royal Bank of Scotland, Shinsei Bank and Sumitomo Mitsui Banking Corp. Bank of China (Macau) and BNP Paribas joined as arrangers.

A group of three banks has won the mandate for Export-Import Bank of China (Chexim)Æs $500 million five year loan. The facility features a margin of 35bp over Libor. Calyon, ING Bank and Standard Chartered are arranging the deal.

Banks have until end of June to revert and fees to the market are on three levels. Arrangers providing $25 million or above earn 25bp over Libor leading to a top level all-in of 33bp; co-arrangers committing $15 million to $24 million get 20bp for an all-in of 32bp while senior managers lending $10 million to $14 million receive 15bp for an all-in of 31bp.

Chexim last tapped the market in February 2006 when it raised $260 million via a three year term loan. That financing featured a spread of 25bp over Libor leading to an all-in yield of 31bp over Hibor.

The signing ceremony for Semiconductor Manufacturing Industrial (Shanghai) CorpÆs $600 million facility took placed on June 9 in Shanghai. Co-ordinating arrangers China Construction Bank (Pudong) took $72 million, Shanghai Pudong Development Bank (Jinqiao) lent $70 million, Bank of Communications (Xingu) and Bank of China (Hong Kong & Shanghai) provided $65 million each, Industrial & Commercial Bank of China committed $40 million while ABN Amro, Bank of Tokyo-Mitsubishi UFJ, DBS Bank and Fubon Bank (Hong Kong) ended up with $35 million apiece.

Joining as arrangers are China Merchants Bank (Si Ping) taking $30 million while three others - China CITIC Bank, China Minsheng Banking Corp and SMBC û held tickets of $24 million each. Four others joined as managers. They are Bangkok Bank and Mizuho Corporate Bank with $16 million each and CITIC Ka Wah Bank and Korea Exchange Bank (Shanghai) pledging $7 million apiece.

Hong Kong

AS WatsonÆs Ç600 million five year financing has been launched into syndication. Calyon, Natexis Banques Populaires and SG are the mandated lead arrangers. Hutchison Whampoa is providing a guarantee.

The facility offers a margin of 27bp over Euribor. Banks underwriting Ç100 million or more earn a sub-underwriting fee of 5bp and a management fee of 15bp for an all-in of 31bp over Euribor. Take-and-hold commitments of Ç75 million receive the 15bp management fee only.

In general syndication, banks have been invited to join on two levels. Arrangers lending Ç30 million to Ç50 million gain 10bp flat and lead managers providing Ç10 million to Ç29 million get 7.5bp.

Proceeds are to refinance bridging loans that backed the borrowerÆs acquisition of French perfume retailer Marionnaud Perfumeries in 2005. Sub-underwriting is scheduled to close on June 23 and general syndication the week after.

Cheung Kong Holdings has successfully raised HK$6 billion from the market. The five year facility was closed on a club basis via eight mandated arrangers. They are Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citigroup, Fortis Bank, ICBC Asia, Mizuho Corporate Bank and Standard Chartered. Signing took place yesterday.

Ocean ParkÆs HK$5.5 billion financing was signed on June 12 (Tuesday). The facility was split between a HK$2.77 billion commercial loan and a HK$1.39 billion government guaranteed loan. A total of 25 banks joined the deal. Bank of China, DBS Bank and HSBC are in the arranging group. Proceeds will be used to fund Ocean ParkÆs redevelopment plan.

The $120 million multi-tranche fundraising for Pacific Andes International Holdings is in the market with banks expected to revert by the end of next week. The facility is split into a $10 million five year tranche æAÆ, a $50 million five year tranche æBÆ and a $60 million four year tranche æCÆ. Both tranches æAÆ and æBÆ feature a margin of 150bp over Libor while tranche æCÆ is priced at 145bp over Libor. A handful of banks are in the process of gaining credit approvals.

The financing marks the borrowerÆs debut in the syndicated loan market. Proceeds will be used to fund the construction of a new factory in Qingdao and to refinance existing debt. A site visit was held last week in Qingdao.

Jindal Steel & PowerÆs $95 million yen-equivalent facility has been upsized from $75 million due to a blowout response. The deal offers a spread of 90bp over Libor. ICICI Bank (Singapore) and ING Bank are the original mandated lead arrangers while Chinatrust Commercial Bank and China Construction Bank Corporation (Hong Kong) joined at the same level.

Indian tools manufacturer PMT has mandated Bank of India, Barclays Capital and State Bank of India to lead a $40 million five year fundraising. The facility is expected to launch today (Friday) or early next week. Proceeds will be used to fund the borrowerÆs expansion plans.


Public Financial Holdings has completed a HK$2 billion term loan with a syndicate of 15 banks. Sole mandated lead arranger Barclays Capital closed the deal at the sub-underwriting stage on June 9 and will not launch it into general syndication. The facility is priced at 52.5bp over Hibor. Sub-underwriters receive the title of mandated lead arranger.

Barclays Capital and Public Bank committed $250 million each. Bumiputra-Commerce Bank (Hong Kong) and DBS Bank took $117 million apiece while ANZ Banking Corp pledged $116 million. Ten other sub-underwriters lent $115 million each. They are Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Bayerische Hypo-und Vereinsbank (Hong Kong), BayernLB, Calyon, CITIC Ka Wah Bank, Mizuho Corporate Bank, SMBC, UOB Asia and WestLB (Singapore).


Las Vegas hotel and casino owner Las Vegas Sands Corp is seeking a $1.31 billion one year loan to fund the development of SingaporeÆs first casino-resort. A handful of banks are bidding for the deal. Las Vegas Sands Corp is currently in the market raising $2.5 billion for development projects in Macau via Lehman Brothers, Citigroup Global, Bank of Nova Scotia (Canada), Banco Nacional Ultramarino and SMBC.

Orchard TurnÆs S$1560 million five year financing signed on June 12. Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, DBS, Mizuho Corporate Bank, Standard Chartered, Sumitomo Mitsui Banking Corp and United Overseas Bank contributed S$156.25 million apiece. Lead arranger WestLB provided S$120 million while arranger Bank of Nova Scotia committed S$75 million and lead manager Maybank lent S$30 million. Senior managers Bank of China pledged S$30 million, First Commercial Bank provided S$25 million and Arab Bank held S$10 million.

Proceeds are to support the development of the Orchard Turn site in Singapore.

South Korea

Allco Aviation FinanceÆs $51.5 million seven year loan was signed yesterday (Thursday). Mandated arranger Korea Development Bank held $23.5 million while co-arrangers National Agricultural Cooperative Federation committed $18 million and China Construction Bank (Seoul) lent $10 million. Allco Asset Finance is providing a guarantee.

Joint mandated lead arrangers Standard Chartered and Lloyds TSB Bank have launched Hana BankÆs $200 million one year term facility into general syndication. Standard Chartered is the sole bookrunner.

The facility is being marketed to banks on four tiers. Mandated lead arrangers providing $20 million or above earn a top level all-in of 12bp over Libor; arrangers absorbing $10 million to $19 million receive an all-in of 11bp; co-arrangers committing $5 million to $9 million gain an all-in of 10bp while senior managers lending $2 million to $4 million get an all-in of 9bp. Proceeds will be used for general corporate purposes. Bank responses are due by June 23.

The $205 million fundraising for Hanjin Shipping is expected to close today. The facility has so far secured three commitments with a total subscription of $90 million. Several others are waiting for credit approvals. BNP Paribas, Citigroup Global Markets Asia, ING Bank, Export-Import Bank of Korea, SG Asia and SMBC are leading the deal.

Hyundai Engineering & ConstructionsÆ $100 million loan-style FRN is expected to close today (Friday). The facility has received five commitments totalling $84 million. Around two banks are in the final stages of gaining credit approvals. The financing is oversubscribed and will not be increased, according to bankers close to the deal. Standard Chartered and Kookmin Bank are arranging the loan.

Korea Exchange BankÆs $250 million 364 day loan has been allocated. The facility was increased from $200 million. Mandated lead arrangers are BayernLB providing $20.5 million and Calyon, DBS Bank, HSH Nordbank (Singapore), Lloyds TSB Bank, Natexis Banques Populaires, RZB, Standard Chartered Bank and Sumitomo Mitsui Banking Corp contributing $16 million apiece.

Arrangers include Banque et Caisse dÆEpargne de LÆEtat (Luxembourg) lending $20 million, Banco Nacional Ultramarino, Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ (Seoul), KBC Bank (Labuan), Oversea-Chinese Banking Corp, UniCredito Italiano (Hong Kong) and United Overseas Bank committing $10 million each while co-arrangers Banco Popolare di Verona e Novara (London) held $7 million and Banca Nazionale del Lavoro (Hong Kong) took $5 million.

Joining as lead managers are Toronto-Dominion Bank pledging $3 million and Anglo Irish Bank providing $2.5 million.

Shinhan BankÆs Ñ35 billion dual tranche term facility was signed on June 14 in Hong Kong after an enthusiastic response from the market. The deal was oversubscribed and increased from Ñ30 billion. A total of 23 banks are joining the deal.

Mandated lead arrangers ABN Amro Bank, Banc of America Securities Asia, BNP Paribas, Calyon, Citigroup Global Markets Asia, HSH Nordbank (Singapore), ING Bank, Lloyds TSB Bank, Mizuho Corporate Bank, SMBC and NordLB (Singapore) took Ñ2.05 billion apiece.

Arrangers BBVA (Hong Kong) lent Ñ1.85 billion while Fortis Bank (Hong Kong) and Banco Popolare di Verona e Novara (London) committed Ñ1.5 billion and Ñ1.2 billion respectively. American Express Bank, Anglo Irish Bank Corporation, Bank of Montreal Ireland, Banque et Caisse dÆEpargne de lÆEtat (Luxembourg), KBC Bank (Labuan) and United Overseas Bank joined at the same level with commitments of Ñ1.1 billion each.

Royal Bank of Canada (Singapore) joined as a co-arranger with a ticket of Ñ500 million while Banca di Roma (Tokyo) and Toronto-Dominion Bank pledged Ñ400 million each.

Farglory Land Development inked a NT$1.6 billion three year dual tranche loan yesterday (Thursday). Mandated arranger Cathay United Bank lent NT$1.28 billion and participant Hsinchu International Bank held NT$320 million. Proceeds are to support the development of property.

Global Testing increased its NT$3 billion term loan from NT$2.5 billion and signing was held earlier this month. Mandated lead arranger Hua Nan Commercial Bank held NT$500 million and Bank of Taiwan and Ta Chong Commercial Bank took NT$450 million each. Lenders include Cathay United Bank and Hsinchu International Bank committing NT$300 million apiece, Central Trust of China, Land Bank of Taiwan, Shanghai Commercial & Savings Bank and Shin Kong Commercial Bank lending NT$200 million each and Industrial Bank of Taiwan and International Bank of Taipei with holds of NT$100 million apiece.

Highlink Technology Corp completed a NT$910 million five year dual tranche fundraising on June 9. Bookrunner Chiao Tung Bank held NT$400 million while lenders Taiwan Cooperative Bank took NT$150 million, Hsinchu International Bank and International Commercial Bank of China committed NT$100 million each, E-Sun Commercial Bank contributed NT$60 million and Chang Hwa Commercial Bank and Hua Nan Commercial Bank each lent NT$50 million.

Hiwin Technologies is seeking a NT$3.4 billion loan from banks. Bank of Taiwan is heard to have teamed up with two other banks to bid for the deal while Industrial Bank of Taiwan is said to be putting in a solo bid. A mandate is expected shortly.

The NT$2.5 billion five year facility for Pou Chen Corp has signed. The loan was increased from NT$2 billion after a strong response in syndication. Bookrunner Chinatrust Commercial Bank held NT$400 million while co-arrangers Chiao Tung Bank, Industrial Bank of Taiwan and Land Bank of Taiwan also contributed NT$400 million each and Hsinchu International Bank provided NT$300 million. Joining as lead managers are International Commercial Bank of China and Shanghai Commercial & Savings Bank with tickets of NT$300 million each.

Powerchip SemiconductorÆs NT$40 billion dual tranche fundraising was signed on Tuesday, June 13, and the amount increased from NT$30 billion. A total of 32 banks are participating in the transaction.

Coordinating arrangers Cathay United Bank and Hua Nan Commercial Bank each held NT$3 billion while Bank of Taiwan, Chang Hwa Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank lent NT$2.5 billion apiece.

Lenders include Taiwan Business Bank providing NT$2 billion, Chiao Tung Bank and Shin Kong Life Insurance committing NT$1.5 billion apiece, Agricultural Bank of Taiwan, Bank of Overseas Chinese, Hsinchu International Bank, International Commercial Bank of China and Ta Chung Bank lending NT$800 million each and Shin Kong Commercial Bank with a contribution of NT$700 million. Central Trust of China, Chin Fon Bank, China Development Industrial Bank and Entie Commercial Bank provided NT$500 million apiece, Bank of Kaohsiung, Chinese Bank, Far Eastern International Bank, Fuhwa Bank, Shanghai Commercial & Savings Bank and Tai Chung Commercial Bank took NT$300 million each, Bank of East Asia and Export-Import Bank of China pledged NT$200 million apiece and China United Trust & Investment Bank joined with a ticket of NT$100 million.

President International Development is tapping the market for a NT$2.8 billion financing. The borrower successfully raised NT$1.5 billion in August last year via a three year loan arranged by Industrial Bank of Taiwan. Banks have submitted proposals and a mandate should be announced shortly.

Teco Electronics & Machinery is close to mandating a group of four to lead arrange a NT$4 billion facility. The banks are Bank of Taiwan, First Commercial Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank. The borrower last tapped the market in November 2004 via a NT$4 billion loan arranged by ABN AMRO, Bank of Taiwan, Chinatrust Commercial Bank, Citigroup and International Commercial Bank of China. That deal offered a spread of 55bp over the CP rate and a participation fee of 10bp.


After a long wait following the close of Rayong RefineryÆs $300 million facility, the mandated arrangers decided to close the deal at the sub-underwriting level. The facility comprises a $100 million seven year term portion and a $200 million revolver. HSBC, Bank of Nova Scotia, BayernLB, Fortis and WestLB are leading the deal. HSBC is the sole bookrunner. The facility will be used to refinance existing debt.

¬ Haymarket Media Limited. All rights reserved.
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