Loan Week, March 24-30

A roundup of the latest syndicated loan market news.

Optus Financeæs A$700 million two year revolving credit has been completed on a club basis.

ABN AMRO, ANZ Bank, Barclays Bank, BNP Paribas, Citibank, Commonwealth Bank of Australia and Westpac committed A$100 million apiece.

Proceeds are for general corporate purposes. Signing took place on March 26.

Hong Kong

A $400 million five year term loan for Cathay Pacific Airways has been completed via a syndicate of 13 banks.

Arrangers Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp committed $80 million apiece while DZ Bank held $44.5 million. Banco Bilbao Vizcaya Argentaria, BayernLB, KBC Bank, Mega International Commercial Bank and Maybank put in $26.5 million each.

Lead arrangers Chong Hing Bank and Westpac contributed $18 million each while managers Banca Monte Dei Paschi di Siena, Hua Nan Commercial Bank and Intesa Sanpaolo ended up with $9 million apiece.

Proceeds are for general corporate purposes.

Hembly Garment ManufacturingÆs HK$200 million dual tranche facility has been completed via sole bookrunner Standard Chartered. The facility was upsized from $150 million due to an oversubscription.

Standard Chartered committed HK$50 million while arranger ICBC (Asia) contributed HK$25 million. Lead managers Bangkok Bank, China Construction Bank, CIMB Bank and Oversea-Chinese Banking Corp took HK$20 million apiece while managers Bank Sinopac, E. Sun Commercial Bank and UniCredito Italiano pledged HK$15 million each.

Signing for KGI International FinanceÆs $66 million three year facility took place on March 23 via sole mandated arranger HSBC. A total of 10 banks joined the deal.

HSBC and Bank of China committed $12 million each while Bank of Taiwan lent $10 million. Citic Ka Wah Bank took $7 million and Public Bank held $6 million. Senior managers Dah Sing Bank and KBC Bank contributed $5 million apiece while managers DBS Bank, Hang Seng Bank and Industrial & Commercial International Capital ended up with $3 million each.


The $170 million ship financing for ABG Shipyard has so far received a $25 million commitment from United Overseas Bank. ICICI Bank is leading the deal

The facility has a door-to-door tenor of 12.5 years and an average life of seven years. The loan is secured by the retention of shipping vessels and pays a margin of 200bp over Libor.

Proceeds are to fund the purchase of 12 vessels. Banks are expected to revert shortly.

BNP Paribas and Standard Chartered are rumoured to have been mandated to arrange India Infrastructure Finance CorpÆs $500 million yen-equivalent loan. The deal features a tenor of 10 years.

A $2 billion 10 year facility for Reliance Industries has been launched into general syndication and sub-underwriting. The facility has an average life of seven years and pays a margin of 51bp over Libor.

The mandated arrangers are ABN AMRO, Banc of America Securities Asia, Bank of Tokyo-Mitsubishi-UFJ, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, ING Bank, Intesa Sanpaolo, Rabobank, Standard Chartered and Sumitomo Mitsui Banking Corp.

Banks have been invited on four levels. Mandated arrangers joining with $100 million or above receive 87.5bp for an all-in of 64.5bp over Libor. Banks joining with take-and-hold commitments of $75 million or above get 87.5bp for an all-in of 63.5bp. Arrangers pledging $40 to $60 million receive 80.5bp for an all-in of 62.5bp, co-arrangers joining with $28 million to $39 million get 73.5bp for an all-in of 61.5bp while lead managers contributing $10 million to $19 million get 66.5bp for an all-in of 60.5bp.

Banks are scheduled to revert by April 27.

A $250 million dual tranche term loan for Videsh Sanchar Nigam (VSNL) was launched into syndication on March 16.

ABN AMRO was originally mandated and joined by DBS Bank, Export Development Canada and HSBC at the top level, with ABN AMRO and DBS Bank acting as bookrunners.

The loan is split equally into $125 million tranches. The six year facility is priced at 48bp over Libor and the seven year portion offers a margin of 51bp. Both have an average life of six and a half years.

Fees to the market are on three levels. Lead Arrangers lending $20 million and above receive a management fee of 95bp, arrangers committing $10 million to $19 million gain 90bp and co-arrangers providing $5 million to $9 million earn 81bp.

The expected closing date is April 20.

Austindo Nusantara Jaya Finance has completed syndication of its $48 million three year deal and signing took place in Jakarta on March 27.

The oversubscribed facility saw the amount increased from $30 million, with sole mandated lead arranger and bookrunner DBS Bank providing $15 million.

Arrangers ANZ Panin Bank and Bank of Panin contributed $10 million apiece, while lead managers Natixis and Bank Resona Perdania held $5 million each. Manager AFC Merchant Bank took $3 million.

The amortising facility offers 50bp over Libor with an average life of 1.875 years. There is also a 50bp commitment fee.


Korea Exchange BankÆs $200 million one year financing has been launched into general syndication via 11 banks.

BayernLB, Calyon, Citigroup, DBS Bank, HSBC, KBC Bank, Landesbank Baden-Wurttemburg, Oversea-Chinese Banking Corp, Standard Chartered, Sumitomo Mitsui Banking Corp and Wachovia Bank are leading the deal.

Banks have until April 20 to respond.


Standard Chartered has been mandated to arrange Penerbangan MalaysiaÆs $1 billion two year facility.

The deal is split into a $700 million tranche æAÆ with an average life of 1.89 years that pays a margin of 12bp over Libor; and a $300 million tranche æBÆ with an average life of 3.89 years and a margin of 17bp.

Banks have been invited to join on three levels. For tranche æAÆ, banks joining with commitments of $70 million or above get a management fee of 4bp for an all-in of 14.1bp while commitments between $35 million to $70 million get 3bp for an all-in of 13.6bp. Those joining with $34 million or less receive 2bp for an all-in of 13.1bp.

Under tranche æBÆ, commitments of $35 million or more get an upfront fee of 7bp for an all-in of 18.8bp; banks lending between $15 million to $30 million earn 5bp for an all-in of 18.3bp and holds of less than $15 million gain 3bp with an all-in of 17.8bp.

The facility is to refinance an existing deal of the same amount signed in 2004. Commitments are due in early April.


An $85 million dual currency financing for broadcasting station ABS CBN was inked on March 27 via mandated arrangers ABN AMRO, Bank of Philippine Islands and ING Bank.

The deal is split into a $39 million four year loan, a $38 million five year portion and an $8 million five year facility. The margin is 20bp over Libor.

Joining as senior managers are Banco De Oro, Mizuho Bank and Security Bank Corp while CIMB and Metropolitan Bank took the title of manager.

Proceeds are to refinance existing debt.

A S$352 million five year multi-tranche credit for Eureka Office Fund was launched into syndication on March 20 via arrangers BNP Paribas and Oversea-Chinese Banking Corp.

Sole mandated arranger Standard Chartered has completed syndication of Olam InternationalÆs $150 million one year revolver.

Bank of Tokyo-Mitsubishi UFJ, Calyon, ICICI Bank, ING Bank and Sumitomo Mitsui Banking Corp are lenders in the facility.

Proceeds are to finance OlamÆs cocoa and coffee origination and trading operations from Ivory Coast and Nigeria. Agri Commodities Trading is the guarantor. Signing took place on March 23.

Park DevelopmentÆs S$395 million four year fundraising has been completed as a club via Sumitomo Mitsui Banking Corp and United Overseas Bank.

Proceeds are to finance land acquisition and construction costs.

Shenton Singapore HoldingsÆ S$226 million dual tranche facility is still syndicating via sole mandated arranger Calyon.

The deal is split into a S$190 million term loan and a S$36 million portion. Both tranches carry a tenor of three years and hold a margin of 51bp over Sibor.

The facility was pre-funded by Calyon in January. Banks are expected to respond by the end of April. Proceeds are to fund the acquisition of Lippo Centre.


Syndication of AIG Credit Card (Thailand)Æs Ñ10 billion two year revolver has been completed via sole arranger HSBC.

HSBC and lead manager BNP Paribas pledged Ñ4 billion each while ICBC (Asia) lent Ñ2 billion.

The signing ceremony was held on March 22.


A NT$500 million seven year financing for Chue Energy Technology was inked yesterday (March 29) via sole mandated arranger Cathay United Bank.

The deal offers a margin of 32bp over the one year postal bureau deposit rate.

Cathay United Bank contributed NT$140 million while lenders Sunny Bank pledged NT$120 million and First Commercial Bank took NT$100 million. Taiwan Business Bank and Shin Kong Bank ended up with NT$70 million apiece.

Mickey RegentÆs $52 million dual tranche fundraising was signed on a club basis on March 28.

The facility comprises a $22 million revolver that features a margin of 93bp over Libor and a $30 million standby letter of credit that pays 108bp. Both tranches feature a tenor of three years.

Hua Nan Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Taishin International Bank and Taiwan Cooperative Commercial Bank committed $10 million apiece while Oversea-Chinese Banking Corp held $2 million.

Proceeds are for working capital purposes.

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