loan-week-march-27april-2

Loan week, March 27-April 2

A roundup of the latest syndicated loan market news.

China

A HK$500 million equivalent dual currency financing for Beijing Enterprises Holdings was closed on March 27 via a consortium of seven banks on a club basis.

The fundraising is split into HK$385 million and $15 million term loans that pay a spread of 140bp per annum.

Mandated lead arranger Seng Heng Bank committed HK$100 million, while Calyon and Mizuho Corporate Bank each took HK$80 million. Agricultural Bank of China and Natixis held HK$75 million and HK$50 million respectively. For the US dollar portion, Bank of Beijing provided $10 million while Malayan Banking contributed $5 million.

Proceeds are for working capital and capital expenditure purposes.

Hong Kong

China Resources Gas Group's HK$800 million self-arranged deal was sealed on March 26 via a consortium of seven banks on a club basis.

The two-year facility pays a spread of 150bp over Hibor.

Final allocations saw DBS contribute HK$300 million, while Agricultural Bank of China gave HK$200 million. Seng Heng Bank and China Construction Bank (Asia) committed HK$100 million and HK$80 million respectively. Dah Sing Bank, Fubon Bank (Hong Kong) and Malayan Banking pledged HK$40 million apiece.

Proceeds are for capital expenditure and general corporate purposes.

India

A Rs4 billion facility for Badarpur Faridabad Tollways was closed on March 31 via sole mandated lead arranger and bookrunner Axis Bank.

Final allocations saw the bookrunner lending Rs650 million, while participants Canara Bank and Oriental Bank committed Rs860 million and Rs850 million respectively. India Infrastructure Finance Company took Rs680 million, Bank of Baroda committed Rs580 million and State Bank of Bikaner & Jaipur rounded off the syndicate with Rs380 million.

Proceeds are for capital expenditure purposes.

A Rs38.5 billion debt package for Damodar Valley Corp's Rs55.1 billion project financing was signed on March 27 via sole bookrunner SBI Capital Markets.

The deal comprises two tranches - a Rs33.6 billion 17-year term loan priced at 11.75% per annum during the construction phase and 11.50% per annum throughout the operation, and a Rs5 billion 15-year portion which offers a 10-year fixed interest of 10.65% per annum.

Final allocations saw participants Power Finance Corp and West Bengal Infrastructure Development Finance Corp lend Rs33.55 million and Rs5 billion respectively.

Proceeds are to support the construction of a 2 x 600MW coal-fired thermal power station in West Bengal.

Krishnapatnam Port's Rs29.9 billion credit has been completed via sole bookrunner State Bank of India.

The 14.75-year financing is split into a Rs28 billion senior debt and a Rs1.9 billion subordinated tranche priced at SBAR minus 25bp and SBAR plus 125bp respectively.

Final allocations saw the lead contribute Rs7.5 billion, while participant UCO Bank took Rs3.3 billion. IDBI Bank gave Rs2.7 billion while Bank of Baroda, Central Bank of India and State Bank of Hyderabad pledged Rs2 billion apiece. Oriental Bank of Commerce provided Rs1.5 billion and Allahabad Bank ended up with Rs1.3 billion. Andhra Bank, Bank of Maharashtra, Corporation Bank, State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore and United Bank of India gave Rs1 billion each. Union Bank of India rounded off the syndicate with a hold of Rs750 million.

Proceeds are to finance the construction of a port in Andhra Pradesh.

A Rs24 billion fundraising for Videocon Industries has been completed via sole bookrunner IDBI Bank.

The deal has a tenor of 1.5 years and pays a spread in the range of 10.5% to 12.5% per annum.

Final allocations saw the lead take Rs10 billion, while participants Indian Overseas Bank, UCO Bank and Union Bank each pledged Rs3 billion. Bank of India committed Rs2 billion, while Bank of Maharashtra and Corporation Bank joined in with Rs1.5 billion apiece.

Proceeds are for capital expenditure purposes.

Malaysia

Syndication of Sime Darby's $400 million transaction is ongoing in the market, led by Bank of Tokyo-Mitsubishi UFJ.

The deal is likely to close in April as a club deal. Proceeds are for general corporate purposes.

Philippines

SM Prime Holdings has successfully secured a $70 million three-year term loan from Bank of Tokyo-Mitsubishi UFJ, ING, Mizuho Corp and Standard Chartered Bank.

General syndication for the loan was launched on March 27 and more banks are expected to participate in the lending.

Proceeds are for general corporate purposes.

Singapore

Syndication of Orchard Parade Holdings' S$250 million loan was sealed yesterday April 2 via sole mandated lead arranger and bookrunner Oversea-Chinese Banking Corp.

The three year facility is split into S$100 million and S$150 million tranches. The margin is priced at 235bp over SOR.

Syndication saw GE Life Assurance and Overseas Assurance Corp come in as lead arrangers, while CIMB Bank joined in as an arranger. China Construction Bank participated as a co-arranger while Bank Mandiri, First Commercial Bank, Mega International Commercial Bank and Qatar National Bank came in as lead arrangers.

Proceeds are to refinance existing debt.

A self-arranged S$1.1 billion transaction for SingTel Group Treasury was inked on March 30 via Bank of Tokyo-Mitsubishi UFJ, Calyon, Citibank, DBS, HSBC, Oversea-Chinese Banking Corp and United Overseas Bank as a club deal. The facility was upsized from S$650 million due a good market response.

The three-year financing pays a top level all-in of 170bp over SOR.

 Proceeds are for refinancing and general corporate purposes.

South Korea

A €90 million one-year financing for Shinhan Bank was inked on March 26 as a four-bank club deal.

Mandated lead arrangers Commerzbank, which is also the agent bank, took €30 million while BNP Paribas, HSBC and Landesbank Baden-Wuerttemberg committed €25 million, €20 million and €15 million respectively.

Proceeds are for refinancing and working capital purposes.

Taiwan

A NT$1.5 billion five-year fundraising for Chung Nan Textile is signing today (April 3) via lead arrangers Agricultural Bank of Taiwan, DBS, Entie Commercial Bank, Land Bank of Taiwan and Mega International Commercial Bank. The loan was oversubscribed and upsized from NT$1.4 billion.

The deal is split into a NT$1.2 billion term loan and a NT$300 million revolver priced at 160bp over the primary CP rate. The facility has a margin floor of 3.1% and pays a commitment fee of 20bp.

Among the bookrunners and coordinating arrangers Land Bank of Taiwan contributed NT$600 million, Mega International Commercial Bank  NT$200 million, Agricultural Bank of Taiwan NT$150 million, Entie Commercial Bank  NT$130 million and DBS NT$120 million. Joint arranger Shanghai Commercial & Savings Bank provided NT$100 million, while participants Hua Nan Commercial Bank lent NT$70 million. Taichung Commercial Bank and Yuanta Commercial Bank held NT$60 million apiece with King's Town Bank taking NT$50 million.

Proceeds are for refinancing and working capital purposes.

Syndication of Jei Yang Construction Corp and Long Da Construction's NT$4.4 billion dual tranche financing has been closed via sole bookrunner and mandated lead arranger Land Bank of Taiwan.

The 3.5-year loan comprises NT$1.4 billion and NT$3 billion term loans that are priced at 3.3% and 3.41% respectively with a commitment fee of 20bp.

Lank Bank of Taiwan committed NT$2.1 billion. Participants Agricultural Bank of Taiwan, Bank of Taiwan, DBS and King's Town Bank joined in with NT$500 million apiece, while Taiwan Cooperative Bank ended up with NT$300 million.

Proceeds are for land acquisition and residential property construction purposes. Signing is slated for April 9.

ITEQ Corp's NT$1.3 billion three-year revolving credit is expected to sign on April 20 via coordinating arrangers Chinatrust Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Business Bank. The facility was oversubscribed and upsized from NT$1.2 billion.

The loan pays a spread of 110bp over the secondary CP rate with a margin floor of 1.8% and a commitment fee of 15bp.

The lead banks lent NT$300 million each, while participant Chang Hwa Commercial Bank pledged NT$100 million.

Proceeds are for working capital purposes.

Taiwan Cement Corp's NT$15 billion five-year dual tranche facility was launched into syndication on April 1 through a consortium of 10 mandated lead arrangers - Bank of Taiwan, Bank of Tokyo-Mitsubishi UFJ, Bank Sinopac, Calyon, Chinatrust Commercial Bank, E.Sun Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank and Taiwan Cooperative Bank.

The debt package is split equally into two five-year term loans. The first tranche offers a margin of 115bp over the 90-day secondary CP rate, while the second tranche is priced at 97.5bp over the same rate. Both have a commitment fee of 10bp.

Banks have been invited to join as co-arrangers with a commitment of NT$500 million or above for an upfront fee of 10bp.

Proceeds are to refinance a NT$15 billion five-year loan signed in December 2005 and for working capital purposes. Syndication is expected to close in early May.

Vietnam

NM Cement's $67 million IFC loan has been sealed via Bank of Tokyo-Mitsubishi UFJ, International Finance Corp, Mitsubishi UFJ Trust & Banking Corp and Mizuho Corporate Bank.

The deal is divided into $33 million and $34 million term loans. Proceeds are to finance the $241 million Nghi Son Cement Phase II Expansion Project in Vietnam.

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