Loan Week, May 26 - June 2

A round up of the latest syndicated loan market news.

Optus Finance has completed a A$300 million refinancing via seven banks. The revolving credit was provided on a club basis by ABN AMRO, ANZ Investment Bank, Barclays Capital, BNP Paribas, Citibank, Commonwealth Bank of Australia and Westpac Banking Corp. Proceeds are to refinance a A$300 million loan that was signed in May last year.


AU Optronics (Suzhou) and AU Optronics (Xiamen) Æs $50 million and Rmb1 billion fundraising has so far received commitments totalling $270 million from six banks. ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, HSBC and Standard Chartered Bank are arranging the deal.

A number of banks are still in the process of gaining credit approval and the arrangers are in discussions with the borrower whether to extend the deadline.

Syndication for Semiconductor Manufacturing International (Shanghai) Corp (SMISC) Æs $600 million fundraising was closed last week with seven banks participating. The facility was slightly oversubscribed and the amount is unlikely to be increased according to bankers in the arranger group. Proceeds will be used to finance the borrowerÆs capital expenditure and general corporate funding requirements. Signing is expected to be held on June 8.

The Rmb500 million dual tranche facility for Xiamen SM City and SM Shopping Centre (Chengdu) had reached financial close with a total of five banks participating. Signing will be held next week.

Bookrunner Standard Chartered Bank held Rmb80 million as did coordinating arrangers Agricultural Bank of China, Hang Seng Bank, Oversea-Chinese Banking Corp and United Overseas Bank.

Hong Kong

Cheung Kong Holdings is close to mandating five banks to arrange its HK$6 billion five year revolving credit. The facility will be used for working capital purposes. Cheung Kong was last in the market when it raised HK$4.1 billion through a five-year club deal. That facility was arranged by Bank of China, BNP Paribas, Citigroup, Hang Seng Bank, HSBC, Mizuho Corporate Bank, Standard Chartered Bank and UFJ Bank.

Hong Kong listed international frozen food group Pacific Andes International Holdings is launching its $120 million five year term facility today (Friday) via mandated lead arrangers HSBC and Rabobank. This is the borrowerÆs first attempt into the market and the financing will be used to fund the borrowerÆs expansion plans in China.


HDFC BankÆs $125 million 364 day credit was signed yesterday (Thursday) with a syndicate of 21 banks. Bank of America Securities, DBS Bank, DZ Bank, Lloyds TSB Bank, Natexis Banques Populaires (Singapore) and RZB are the mandated lead arrangers. Proceeds are to refinance existing debt.

The $200 million seven year export credit for JSW Steel has been launched into general syndication. Bookrunner ABN AMRO was joined by mandated lead arrangers KBC Bank, KfW and Standard Chartered prior to launch.

The deal carries a margin of 170bp over Libor and banks have been invited to join on two levels. Lead arrangers committing $10 million or more earn 25bp flat and arrangers providing less than $10 million gain 20bp.

The loan is guaranteed by Duferco and proceeds are for trade finance purposes. Roadshows were held in Bahrain last week and in Singapore on May 30. Responses are due by June 16.

Federal International FinanceÆs $75 million five year dual-tranche loan is progressing in syndication and should reach financial close shortly. ABN AMRO and Netherlands Development Finance are syndicating a $50 million B-loan while Netherlands Development Finance is providing a $25 million A-loan.

The latest banks to join are HVB with a $10 million commitment and State Bank of India with a ticket of $7 million. Erste Bank joined earlier with a hold of $15 million. A handful of investors are in the final stages of credit approval and are expected to revert soon.

The $60 million four year financing for Saptaindra Sejati has been completed. Bank UOB Indonesia, Bank Resona Perdania and Export Development Canada joined mandated arranger Sumitomo Mitsui Banking Corp in syndication. Proceeds are to refinance shareholder loans, to purchase machinery and to provide for working capital requirements.


Bumiputra-Commerce BankÆs $300 million loan was signed on May 26 with a syndicate of 10 banks. Six banks joined bookrunners ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, Citigroup and Standard Chartered Bank in syndication.


ARMF (TBP) PrivateÆs S$123 million two year dual tranche fundraising has been allocated. The facility is split into a S$121 million transferable term loan and a S$2 million revolver. BNP Paribas is the mandated lead arranger and sole bookrunner with a contribution of S$45 million.

Lead arrangers include Credit Industriel et Commercial (Singapore) and ICBC (Singapore) holding S$23 million apiece with RHB Bank (Singapore) taking S$20 million. Joining as an arranger is Bank of Taiwan (Singapore) providing S$12 million. The term loan portion will be used to refinance existing bank borrowings while the revolver will be used for working capital requirements. Signing was held on May 30.

Horizon Singapore Terminals has raised S$270m via an 11 year facility provided by 12 banks. HSBC led the deal and ran the books on a sole basis.

The borrower completed a S$240 million loan in July last year for the construction of a new bulk liquids terminal on Jurong Island. Existing lenders of this deal were invited to participate in the new transaction. The banks include Bank of Tokyo-Mitsubishi UFJ, Credit Industriel et Commercial (CIC), Oversea-Chinese Banking Corp, United Overseas Bank, Bayerische Hypo-und Vereinsbank, DZ Bank, Fortis Bank, KBC Bank, Natexis Banques Populaires, NordLB and BNP Paribas.

Proceeds are to support the increase in capacity of the project by 110 000cbm and runs concurrently with the original phase with completion expected by the end of the year.

Sub-underwriting for PSA InternationalÆs dual tranche fundraising was oversubscribed and closed last week with 15 banks participating. The facility has been upsized to $3.42 billion from $2.6 billion due to an overwhelming response in sub-underwriting. A wider syndication will be launched next week via mandated lead arrangers Barclays Capital, DBS Bank and Royal Bank of Scotland.
South Korea

Allco Aviation FinanceÆs $51.5 million seven year financing has been allocated. Lead arranger Korea Development Bank provided $23.5 million. Co-arrangers are National Agricultural Cooperative Federation contributing $18 million and China Construction Bank (Seoul) lending $10 million.

The deal features a margin of 120bp over Libor. Proceeds are for general corporate purposes and Allco Asset Finance is providing a guarantee. Signing will be held on June 15.

Allocations for Hyundai CardÆs $100 million one year revolving credit have been finalised. A handful of banks were invited to join the deal that closed slightly oversubscribed.

Coordinating arrangers Sumitomo Mitsui Banking Corp held $25 million and Calyon and ING Bank lent $20 million each. Arrangers include National Agricultural Cooperative Federation committing $20 million and Bank of China providing $10 million. Mizuho Corporate Bank joined with a commitment of $5 million as a co-arranger. Signing will take place shortly.

Hyundai Engineering & ConstructionÆs $100 million three year loan-style FRN has so far secured two commitments totalling $29 million. Kookmin Bank and Standard Chartered Bank are leading the deal.

The deal offers an all-in of 76bp over Libor and proceeds are to finance the borrowerÆs projects overseas. Bank responses are due next Friday.

Anglo Irish Bank, BNL, United Overseas Bank, Toronto Dominion Bank and UOB Asia have so far committed to Korea Exchange BankÆs $200 million 364 day loan. BayernLB, Calyon, DBS Bank, HSH Nordbank, Lloyds TSB Bank, Natexis Banques Populaires, RZB, Standard Chartered Bank and Sumitomo Mitsui Banking Corp are the mandated arrangers. The deal is expected to complete syndication shortly.

A $70 million three year facility for PMX Industries was signed on May 26. Eight banks provided the funds.

Mandated arranger Korea Development Bank lent $30 million while co-arrangers Hana Bank (Singapore) took $9 million, Korea Exchange Bank (Hong Kong) provided $8 million, Shinhan Bank (London) and Sumitomo Mitsui Banking Corporation held $6 million apiece, National Agricultural Cooperative Federation committed $5 million and Export-Import Bank of Korea and Woori Bank took $3 million each. Proceeds are for working capital purposes.

Shinhan BankÆs Ñ30 billion transferable term facility is still progressing in syndication with banks expected to revert by next Monday. The financing has so far secured three commitments and a handful of banks are still awaiting official confirmations. ABN AMRO, Banc of America Securities Asia, BNP Paribas, Calyon, Citigroup Global Markets Asia, HSH Nordbank AG (Singapore), ING Bank, Lloyds TSB Bank, Mizuho Corporate Bank and SMBC are leading the deal. The facility will be used to refinance the borrowerÆs Ñ33 billion term financing signed in May 2005. Signing is targeted for June 12.


K-Bridge ElectronicsÆ NT$4.3 billion three year revolving credit was signed on Monday, May 29. A total of 10 banks are participating in the facility.

Mandated arranger Taishin International Bank held NT$1.1 billion. Fuhwa Bank joined as a co-arranger with NT$800 million while lead managers include Hsinchu International Bank committing NT$600 million, Far Eastern International Bank lending NT$500 million and Chiao Tung Bank providing NT$400 million. Managers are Jih Sun International Bank, KingÆs Town Bank, Shanghai Commercial & Savings Bank and Shin Kong Commercial Bank pledging NT$200 million apiece and Bank of Kaohsiung with a ticket of NT$100 million.

The deal offers a spread of 95bp over the 90 day primary CP rate and 110bp over Libor and proceeds are for working capital purposes.

A NT$1.5 billion 3-1/2 year dual tranche fundraising for Pontex Polyblend was inked on May 30. The facility comprises a NT$700 million term loan and an NT$800 million revolver.

Bookrunner Taishin International Bank lent NT$170 million while lead managers Chang Hwa Commercial Bank held NT$165 million and Hua Nan Commercial Bank took NT$140 million. Joining as managers are Bowa Bank, Central Trust of China, China United Trust & Investment Corp, EnTie Commercial Bank, Fuhwa Bank, Hwatai Bank, Shanghai Commercial & Savings Bank, Shin Kong Commercial Bank and Sunny Bank with tickets of NT$95 million each, Bank of Kaohsiung and E-Sun Bank committing NT$60 million apiece and Asia Trust & Investment Corp lending NT$50 million.

Siliconware Precision IndustriesÆ NT$7 billion five year financing was signed on Tuesday with a consortium of 22 banks. Bank of Taiwan, Calyon, Chinatrust Commercial Bank, International Commercial Bank of China, Mizuho Corporate Bank and Taipei Fubon Commercial Bank are the coordinating arrangers.
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