loan-week-may-2226

Loan Week, May 22-26

A round up of the latest syndicated loan market news.
Hong Kong

Hongkong LandÆs HK$7 billion seven year facility is set to complete syndication this week via mandated arrangers Bank of China, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, DBS Bank, HSBC, Industrial & Commercial Bank of China, Mizuho Corporate Bank, Rabobank Nederland, Royal Bank of Scotland, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The loan offers a spread of 29bp over Hibor, with two levels of participation. Commitments of HK$150 million or more pay an upfront fee of 35bp over Hibor to arrangers, with an all-in of 34bp, while holds of HK$75 million to HK$145 million garner 24.5bp to senior managers. Signing will be held on June 5.

Mandated lead arranger Citigroup has closed senior syndication for Lee & Man Paper ManufacturingÆs HK$1 billion five year term facility with eight banks participating. Joining as sub-underwriters are BNP Paribas, Bank of Communication, Bank of Tokyo-Mitsubishi UFJ, China Construction Bank, ICBC Asia, Mizuho Corporate Bank, SMBC and UOB Asia.

The financing offers a spread of 58bp over Hibor with an average life of 3.68 years. The facility was launched into general syndication this week and banks have been invited to join on one level. This is the borrowerÆs first attempt to the market and pricing is around the early 70s over Hibor. Proceeds will be used to refinance existing debt and for working capital purposes.

Shanghai Industrial Investment HoldingsÆ HK$3.5 billion term facility has so far secured four commitments in general syndication. They are Bank of Tokyo-Mitsubishi UFJ, Liu Chong Hing Bank, Shanghai Pudong Development Bank and Tai Fung Bank. Around three banks are still processing approvals. General responses are not as strong as expected according to bankers close to the deal. The deadline has been further extended to May 26.

Wharf is in the market and has invited a handful of banks to arrange its HK$5 billion five year term facility. Proceeds will be used for acquisition of real estate. The parent company, Wharf Holdings, last tapped the market in July 1997 when it borrowed HK$3 billion through a five year revolver that carried a spread of 46bp over Hibor. In October 1998, WharfÆs subsidiary Wharf Properties borrowed HK$1.835 billion through a five year term facility paying a margin of 187.5bp over Hibor.


India

HDFC BankÆs $125 million 364 day facility met with an overwhelming response and was increased from $100 million. Subscriptions totalled $227.5 million.

Mandated lead arrangers Banc of America Securities Asia, DBS Bank, DZ Bank, Lloyds TSB Bank, Natexis Banques Populaires and RZB (Singapore) held $7.5 million each. Arrangers include Bank Austria Creditanstalt and Wachovia Bank lending $7 million apiece and AKA, BayernLB, Erste Bank and WGZ Bank providing $6 million each.

Joining as lead managers with commitments of $5 million apiece are Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Banque International des Mascareignes, Oversea-Chinese Banking Corp, Sanpaolo IMI, Export-Import Bank of the Republic of China and Unicredito Italiano. Banca Popolare di Verona e Novara took the title of manager with a ticket of $2 million. Signing will be held on June 1.

IndiaÆs pharmaceutical and healthcare company, Wockhardt completed syndication of its $250 million five-year fundraising was closed last Friday with nine banks committing. Bank of Baroda, Barclays Capital, Citigroup, ICICI Bank, Rabobank International and State Bank of India are leading the deal. Bookrunners are Barclays Capital, Citigroup and ICICI Bank. The facility offers a margin of 105bp over Libor.

Proceeds will be used for investments in the borrowerÆs overseas subsidiaries and for acquisitions purposes. Allocations should be finalised soon.
Indonesia

Indover BankÆs $50 million 364 day fundraising, lead arranged by BayernLB, Natexis Banques Populaires and Oversea-Chinese Banking Corp, is oversubscribed.

Seven commitments have been secured so far in general syndication from Bank Mandiri, Bank Negara Indonesia, Commerzbank, Danske Bank, NordLB, RZB and Sumitomo Trust & Banking. Bank responses are due by this week.

Malaysia

Allocations for Bumiputra-Commerce BankÆs $300 million five year financing have been finalised and signing will be held next week. A total of 10 banks are participating in the transaction.

Mandated lead arrangers Public Bank held $120 million, BayernLB lent $40 million and ABN AMRO Bank, Bank of Tokyo-Mitsubishi UFJ, Citigroup Global Markets Asia and Standard Chartered Bank took $26.25 million each. Joining as co-arrangers are Bank of China (Hong Kong), Export-Import Bank of the Republic of China and Wachovia Bank committing $10 million apiece and Deutsche Bank (London) with a ticket of $5 million.

A S$540 million five year loan for SunShare Investments was signed on May 18. Seven banks provided the funds on a club basis. Oversea-Chinese Banking Corp held S$110 million, Bank of Tokyo-Mitsubishi UFJ lent S$100 million, United Overseas Bank took S$80 million, NordLB and Sumitomo Mitsui Banking Corp provided S$75 million apiece and Commonwealth Bank of Australia and Standard Chartered Bank committed S$50 million each.

Proceeds are to take out the S$540 million bridge loan signed in October last year for the acquisition of a 12.06% stake of mobile communications provider MobileOne.


Singapore

Ho Bee CoveÆs S$249 million 3-1/2 year credit was signed last week. The facility was oversubscribed but not increased.

Mandated lead arrangers Oversea-Chinese Banking Corp held S$85 million and DBS Bank, HSBC and Maybank lent S$25 million each. Co-arrangers include Bank of China and RHB Bank committing S$18 million apiece and Bank of East Asia providing S$12 million.

Joining as lead managers are Arab Bank, Chang Hwa Commercial Bank, First Commercial Bank and Hua Nan Commercial Bank contributing S$9 million apiece and Bank of India absorbing S$5 million.

A S$186 million 4-1/2 year facility for Hong Leong Holdings has been completed. Bank of Tokyo-Mitsubishi UFJ, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp joined mandated lead arrangers HSBC and United Overseas Bank in syndication.

The borrower also raised S$350 million via a five year dual-tranche loan that was signed on May 19. Bank of America, Bank of Tokyo-Mitsubishi UFJ, HSBC, Oversea-Chinese Banking Corp and Sumitomo Mitsui Banking Corp led the deal and were joined by Bank of China (Singapore), Credit Industriel et Commercial (Singapore), BNP Paribas, DZ Bank (Singapore), Mizuho Corporate Bank (Singapore) and NordLB. Proceeds are to refinance existing debt and provide for working capital requirements.

Olam InternationalÆs $300 million five year fundraising was signed on Tuesday, May 23. The facility met with an enthusiastic response and saw 15 banks join bookrunners DBS Bank, HSBC, Rabobank International and Standard Chartered Bank in syndication.

Lead arrangers DBS Bank, HSBC, Rabobank International and Standard Chartered Bank held $35 million each while Royal Bank of Scotland (Singapore) lent $22 million. Arrangers include Bumiputra-Commerce Bank and ICICI Bank (Singapore) providing $19 million apiece and the Singapore branches of DZ Bank and State Bank of India contributing $14 million each.

Joining as lead managers are UCO Bank (Singapore) pledging $10.5 million and Bank of Taiwan (Singapore), Cathay United Bank and Land Bank of Taiwan (Singapore) committing $10 million apiece. Co-managers are Indian Bank (Singapore) lending $8.5 million and Bank of India (Singapore). Chang Hwa Commercial Bank (Singapore), Maybank (Hong Kong) and Indian Overseas Bank (Singapore) holding $5 million each and Shanghai Commercial & Savings Bank (Offshore Banking) with a ticket of $3 million.

The S$1.56 billion five year credit for Orchard Turn should complete syndication today (Friday). Bank of Tokyo-Mitsubishi UFJ, Calyon, Citigroup, DBS Bank, Mizuho Corporate Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank are leading the deal.

A handful of banks have already joined with more investors expected to revert by the end of the week. The loan offers a top level all-in of 54bp over Sibor.
South Korea

Hanjin ShippingÆs $205 million shipping loan was launched into general syndication on Monday via a group of six banks. The mandated lead arrangers are BNP Paribas, Citigroup Global Market Asia, ING Bank NV, Export-Import Bank of Korea, SG Asia and SMBC. BNP Paribas, Citigroup Global Markets Asia, ING Bank and SG Asia are the bookrunners while SG Asia is the facility and security agent.

The financing comprises a $82.048 million pre-delivery tranche that is split into a $28 million tranche æAÆ and a $54.048 million two to three years tranche æBÆ; and a $205.12 million post-delivery tranche that consists of a $70 million tranche æAÆ and a $135.12 million 12 year tranche æBÆ. Tranche æAÆ for the pre and post-delivery portions have been fully subscribed by Export-Import Bank of Korea.

Banks have been invited to participate on one level in tranche æBÆ for the pre and post-delivery financing. The pre-delivery tranche carries a margin of 30bp over Libor and arrangers lending $6 million and above earn an all-in of 30bp. The post-delivery tranche offers a spread of 57bp over Libor receive 25bp flat for an all-in of 60.4bp over Libor. There is also a commitment fee of 15bp for both tranches and participation amounts will be allocated on a two-tofive ratio.

Proceeds will be used to finance up to 80% of the building costs of four 4,300 TEU container vessels which will be delivered in December 2008, January 2009, March 2009 and April 2009 respectively.

Banks responses are due by June 9 and signing is targeted for June 23.

United Overseas Bank is the first to commit to Korea Exchange BankÆs $200 million 364 day financing.

Mandated arrangers comprise BayernLB, Calyon, DBS Bank, HSH Nordbank, Lloyds TSB Bank, Natexis Banques Populaires, RZB, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. Bank responses are due by June.

Taiwan

The NT$3 billion five year credit for Asia Vital Components was signed on May 23. The syndicate comprises a total of 23 banks.

Coordinating arrangers Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and Taiwan Cooperative Bank held NT$285 million apiece.

Lenders are Fuhwa Bank lending NT$170 million and Chiao Tung Bank, Hua Nan Commercial Bank, International Commercial Bank of China and Shanghai Commercial & Savings Bank providing NT$150 million apiece. Also joining with commitments of $80 million each are Bank of Overseas Chinese, Bank Sinopac, Cathay United Bank, Central Trust of China, China Development Industrial Bank, Far Eastern International Bank, Hsinchu International Bank, Industrial Bank of Taiwan, International Bank of Taipei, Shin Kong Commercial Bank and Taishin International Bank. China United Trust & Investment and Hwatai Commercial Bank also participated with holds of NT$50 million each.

BenQ CorpÆs NT$10 billion five year facility was launched into syndication on Tuesday. Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and International Commercial Bank of China are leading the deal.

The loan features a spread of 45bp over the secondary CP rate and fees to the market are on three levels. Co-arrangers lending over NT$1 billion earn a participation fee of 7bp, lead managers contributing NT$501 million to NT$1 billion gain 4bp and managers providing NT$300 million to NT$500 million receive 2bp. There is also a commitment fee of 15bp.

Proceeds are for working capital purposes and banks have until June 23 to revert.

Chang Xuan Construction has successfully raised NT$2.2 billion via a three year dual tranche financing provided by two banks. Chiao Tung Bank lent NT$1.5 billion while Chung Hsing Bills Finance committed NT$700 million. Proceeds are for general corporate funding requirements.

A NT$750 million 10 year term loan for Seedz Malls Properties was inked on May 17. Mandated arranger Chiao Tung Bank held NT$104 million.

Lenders include Agricultural Bank of Taiwan holding NT$104 million, Taiwan Cooperative Bank committing NT$96 million, Far Eastern International Bank taking NT$87 million, First Commercial Bank, International Bank of Taipei and Shanghai Commercial & Savings Bank lending NT$43 million apiece, Bank of Panhsin contributing NT$35 million and Central Trust of China and Hua Nan Commercial Bank with tickets of NT$26 million each.

Siliconware Precision Industries (SPIL) Æs NT$7 billion five year dual tranche facility has completed syndication and will sign on May 30. A total of 22 banks are participating in the loan.

Coordinating arrangers Bank of Taiwan, Calyon, Chinatrust Commercial Bank, International Commercial Bank of China, Mizuho Corporate Bank and Taipei Fubon Commercial Bank held NT$600 million each. Joining as lead managers are Hua Nan Commercial Bank and Taiwan Cooperative Bank lending NT$400 million apiece, Central Trust of China and China Development Industrial Bank providing NT$370 million each and E Sun Commercial Bank, Hsinchu International Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Shin Kong Commercial Bank and Taiwan Business Bank with tickets of NT$140 million apiece.

Managers include DBS Bank committing NT$300 million, Cathay United Bank pledging NT$120 million and Bank of Overseas Chinese, Chang Hwa Commercial Bank, Kaohsiung Bank and Shanghai Commercial & Savings Bank contributing NT$100 million each.

Mandated arranger Bank of Taiwan launched a NT$3.5 billion five year dual-tranche financing for Taiwan Kolin into syndication on Tuesday, May 23. The facility comprises a NT$2 billion term loan and a NT$1.5 billion revolver.

The margin is 180bp over the 90-day primary CP rate and fees to the market are on four levels. Co-arrangers lending more than NT$700 million receive 12bp, lead managers NT$501 million to NT$700 million gain 10bp, managers providing NT$301 million to NT$500 million receive 7bp and NT$201 million to NT$300 million get 4bp.

Proceeds are to refinance an existing NT$2.5 billion five year facility that was signed in March last year and arranged by Bank of Taiwan as well as for working capital requirements. The previous deal saw 12 banks join in syndication. Bank responses are due by June 23.


Thailand

Syndication close for Siam Panich LeasingÆs Ñ9.3 billion three year facility has been extended as banks process their approvals. The borrower is looking to drawdown the funds in the first week of June and mandated arranger Standard Chartered may pre-fund the deal before completing syndication.

The deal offers an all-in yield of 56bp over yen Libor to top level arrangers. Proceeds are for general corporate purposes.
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