Loan week, May 22-27

A roundup of the latest syndicated loan market news.


A Rs49 billion guarantee facility for Tata Motors has been inked through sole mandated lead arranger and bookrunner State Bank of India. The seven-year facility is priced at 350bp over the 10-year government security rate. Lenders receive a flat fee of 1.05%.

Final allocations saw the bookrunner lending Rs7 billion, while participants Bank of India and Indian Bank provided Rs8 billion and Rs7.8 billion each. IDBI Bank and Andhra Bank committed Rs5 billion and Rs4 billion respectively, while Federal Bank took Rs3 billion. Allahabad Bank offered Rs2.5 billion and United Bank of India Rs1.5 billion, while Karur Vysya Bank and State Bank of Mysore ended up with Rs1 billion apiece. Other undisclosed banks provided the remaining Rs8.2 billion.

Proceeds are to take out a $3 billion acquisition bridge facility signed in June 2008. The US dollar portion of the take-out financing is slated to sign soon. 

Western Region Transmission (Gujarat) secured a Rs3.3 billion project financing last week via sole mandated lead arranger State Bank of India.

The 12.75-year term loan features a 120bp commitment fee.

Final allocations saw the lead taking Rs1.6 billion, while participants India Infrastructure Finance, Vijaya Bank and Bank of Maharashtra gave Rs867 million, Rs610 million and Rs250 million respectively.

Proceeds are to finance the development of a 500km power transmission line in Maharashtra. 

Western Region Transmission (Maharashtra)'s Rs6.4 billion 12.75-year term loan was also sealed last week through sole bookrunner State Bank of India.

Final allocations saw the lead arranger lending Rs2.1 billion, while participant India Infrastructure Finance held Rs1.2 billion. South Indian Bank and Vijaya Bank gave Rs754 million and Rs650 million respectively, while State Bank of Hyderabad and United Bank of India committed Rs580 million apiece. Andhra Bank rounded off the syndicate with a Rs520 million ticket.

Proceeds are to support the development of a 1,000km power transmission line in Maharashtra.


Fuji Dream Airlines' ¥8.5 billion five-year aircraft facility has been sealed via bookrunners Bank of Fukuoka and Development Bank of Japan.

Syndication saw Bank of Tokyo-Mitsubishi UFJ, Chuo Mitsui Trust & Banking, Fukuokaken Shinren, Mitsubishi UFJ Trust & Banking Corp, Mizuho Corporate Bank, Shimizu Bank, Shizuoka Shinkin Bank, Shoko Chukin Bank, Sumitomo Mitsui Banking Corp and Sumitomo Trust & Banking come in at lower tiers.

Proceeds are to support the acquisition of aircraft.

A $1.05 billion dual-tranche debt package for Minera Esperanza has been sealed via bookrunners Bank of Tokyo-Mitsubishi UFJ, Calyon, ING, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp.

The 12-year term loan comprises a $400 million tranche supported by commercial banks, and another $650 million portion offered by other financial institutions.

For the $400 million facility, the leads committed $62 million apiece. Arrangers Banco Santander and Natixis contributed $50 million and $40 million respectively.

Proceeds are to fund a greenfield copper and gold mine development project in Chile.

Mitsui OSK Lines' ¥15 billion three-year loan is in the market via sole bookrunner Sumitomo Mitsui Banking Corp.

The three-year term loan is priced at 30bp over six-month Tibor.

Proceeds are for working capital purposes.


Wateen Telecom's PKR2.8 billion three-year bridge facility has been signed via mandated lead arrangers Habib Bank and Standard Chartered Bank.

The deal is priced at 200bp over Kibor. Proceeds are for general corporate purposes.


A $150 million three-year amortising facility for International Container Terminal Services (ICTSI) has been inked via ANZ, Bank of Tokyo Mitsubishi UFJ, Calyon, Chinatrust Commercial Bank, Citi, HSBC and Mizuho Corporate Bank.

Proceeds are to refinance a $250 million debt package maturing in December 2010.


ASL Shipyard's $66 million extension facility has been sealed via a consortium of seven mandated lead arrangers on a club basis.

BNP Paribas, Natixis and Oversea-Chinese Banking Corp committed $14 million each, while Bangkok Bank and Sumitomo Mitsui Banking Corp took $12 million apiece.

Proceeds are to extend an existing guarantee facility and a performance bond maturing in 2009.

South Korea

A $270 million loan-style FRN for Korea National Oil Corp was inked on May 26 on a club basis via a group of eight lenders. The facility was upsized from $150 million.

The three-year deal pays a spread of 340bp over Libor.

Final allocations saw DBS and Standard Chartered Bank commit $50 million apiece, while WestLB provided $40 million. ANZ, Calyon, Chinatrust Commercial Bank and Natixis gave $30 million apiece, while Mega International Commercial Bank ended up with $10 million.  

Proceeds are for working capital purposes.

A $70 million fundraising for PMX Industries was scheduled to be signed yesterday (May 28) via sole mandated lead arranger and bookrunner Korea Development Bank.

Final allocations saw the lead commit $39 million. Participants Hana Bank and Korea Exchange Bank provided $10 million and $9 million respectively. National Agricultural Cooperative Federation came in with a hold of $5 million, while Shinhan Bank joined the deal with a $4 million ticket. Woori Bank rounded out the group with $3 million.

Guaranteed by Poongsan Corp, the one-year loan-style FRN features a margin of 600bp over Libor and has an upfront fee of 150bp.

Proceeds are for working capital purposes. 

Syndication of Rich Real Estate Development's NT$1.8 billion fundraising was closed on May 22 via sole bookrunner and mandated lead arranger Land Bank of Taiwan. Allocations are being finalised.

The three-year debt package is split into term loans of NT$1.5 billion and NT$300 million. Both tranches are priced at 450bp over the average one-year savings deposit rates for Bank of Taiwan, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan and Taiwan Cooperative Bank. Unlike other syndicated facilities in Taiwan, there is no pricing floor set for this deal.

Three levels were offered in general syndication. Co-arrangers committing NT$300 million or above gain an upfront fee of 110bp, joint arrangers coming in with NT$200 million to NT$300 million get 75bp, while participants holding NT$100 million to NT$200 million take 40bp.

Proceeds are to finance an urban renewal project. Signing is slated for June 10.

A NT$1.9 billion facility for Sanlight Corp has been completed via bookrunners and mandated lead arrangers Chang Hwa Commercial Bank and Taiwan Cooperative Bank.

The four-year term loan comprises a NT$789 million tranche and a NT$1.16 billion portion. The secured tranche is priced at 225bp over the one-year post office savings rate and the unsecured tranche offers a spread of 275bp over the same rate. Both tranches feature a commitment fee of 15bp.

Allocations saw the mandated leads contribute NT$840 million each. Participants Sunny Bank and Agricultural Bank of Taiwan gave NT$200 million and NT$70 million respectively.

Proceeds are for debt repayment and construction financing purposes.

TransAsia Airways Corp's NT$1.4 billion financing was completed on May 21 via bookrunners Cathay United Bank, EnTie Commercial Bank and Industrial Bank of Taiwan.

Secured by six aircraft, the five-year term loan offers a spread of 175bp over the two-year floating post office savings rate, with a pricing floor of 3% pretax.

Final allocations saw the leads contribute NT$250 million each, while co-arrangers Far Glory Life Insurance and Taiwan Life Insurance committed NT$200 million apiece. Yuanta Commercial Bank, also a co-arranger, lent NT$150 million. Participants Shanghai Commercial & Savings Bank and Union Bank of Taiwan gave NT$150 million each, and Agricultural Bank of Taiwan, Chang Hwa Commercial Bank, Land Bank of Taiwan and Taishin International Bank joined in with NT$100 million apiece.

Proceeds are to refinance a NT$3 billion term loan signed in July 2005 and for working capital purposes.  

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