Loan week, November 13-19

A roundup of the latest syndicated loan market news.

Hong Kong

A $250 million five-year transferable term loan for China Agri-Industries was sealed via a consortium of six mandated lead arrangers on a club basis.

Final allocations saw Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Industrial & Commercial Bank of China (Asia) and Standard Chartered Bank commit $50 million apiece. Banco Santander joined in with a hold of $20 million, while CITIC Ka Wah Bank and Mizuho Corporate Bank took $15 million each.

The self-arranged financing is priced at 100bp over Libor and proceeds are for capital expenditure and working capital purposes.

Victory City's HK$800 million four-year financing is in the market via mandated lead arrangers and bookrunners Bank of Tokyo-Mitsubishi UFJ, CITIC Ka Wah Bank, Hang Seng Bank, HSBC and Mizuho Corporate Bank.

Four to five banks have committed to the deal with the target amount already reached. The leads are still waiting on other banks to join in.

The all-in pricing ranges between 225bp and 235bp and banks are welcome to join as lead arrangers with tickets of $70 million or above, as arrangers committing $50 million to $69 million or as senior managers providing between $40 million and $49 million.

Syndication is slated to close by the end of November or early December. Proceeds are to refinance a HK$1.4 billion five-year loan signed in February 2007.


Bina Power Supply's Rs19.3 billion 14.25-year term loan has been signed via sole bookrunner IDBI Bank. The lead committed Rs4.1 billion, while participants Central Bank of India and Punjab National Bank each lent Rs3.6 billion. Union Bank of India contributed Rs1.6 billion and Allahabad Bank and Canara Bank took Rs1.2 billion apiece. Bank of Rajasthan, Jammu & Kashmir Bank, State Bank of Hyderabad and State Bank of Patiala held Rs1 billion each.

The deal will be repaid in 40 quarterly installments after a grace period of six months. Proceeds are to support a 500MW coal-based thermal power project at Bina, Dist Sagar, Madhya Pradesh, India.

Jindal Steel and Power has successfully secured a Rs8.1 billion 9.25-year term loan via sole mandated lead arranger State Bank of India.

Among the lenders, Union Bank of India committed Rs2 billion and Bank of Maharashtra took Rs1.5 billion. Axis Bank and India Bank each held Rs1 billion, while State Bank of Bikaner and Jaipur lent Rs800 million. Andhra Bank, Punjab and Sind Bank and UCO Bank gave Rs600 million apiece.

Proceeds are to support the construction of phase two of a 270MW captive power plant at Raigarh, Chattisgarh, India.

An Rs8 billion dual-tranche debt package for Rosa Power Supply has been inked via bookrunner IDBI Bank.

The 15-year fundraising comprises a Rs4.8 billion term loan and a Rs3.2 billion letter of credit.

Final allocations saw IDBI Bank contribute Rs4.5 billion, while participant Allahabad Bank took Rs2 billion. Bank of Rajasthan, Dena Bank and Kaarnataka Bank each held Rs500 million.

The repayment schedule will be 48 quarterly installments after a grace period of six months. Proceeds are to support the construction and operation of a coal-fired thermal power generation station at the village Rosa, State of Uttar Pradesh, India.


A Rp1 trillion fundraising for PT Holcim Indonesia has been sealed via a consortium of five lenders on a club basis.

Mandated lead arrangers Bank of Tokyo-Mitsubishi UFJ, PT Bank of Central Asia and PT CIMB Niaga each lent Rp225 billion, while DBS Bank and Sumitomo Mitsui Banking Corp committed Rp162.5 billion each.

Proceeds are to support acquisition activities and for debt restructuring purposes.


HSBC Institutional Trust Services (Singapore), on behalf of MacarthurCook Industrial REIT, has completed a S$175 million three-year term loan via mandated lead arrangers Commonwealth Bank of Australia, National Australia Bank and Standard Chartered Bank.

Pricing of the deal is tied to the loan-to-value ratio. The deal pays a spread of 350bp over the swap offer rate if the ratio is less than 35%, and 450bp if it is equal to or greater than 3.5%.

Proceeds are to repay a S$202 million outstanding facility provided by Commonwealth Bank of Australia and National Australia Bank.


Dragon Steel Corp's NT$20 billion financing has been oversubscribed and is expected to sign in mid-December via bookrunners Bank of Taiwan, Bank Sinopac, Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Commercial Bank. The deal is not expected to be upsized.

The seven-year term loan is priced at 60bp over the secondary CP rate. An interest rate floor of 1.5% is effective in the first year after drawdown.

Land Bank of Taiwan and Taiwan Business Bank joined in as mandated lead arrangers, and BankTaiwan Life Insurance, Cathay United Bank, Export-Import Bank of the Republic of China and E.Sun Commercial Bank participated at lower tiers.

Proceeds are to build a hot rolling steel plant in Taichung, Taiwan.

Huizhou Universal Cement and Huan Lung International's $45 million facility was sealed last week via bookrunners Cathay United Bank, Chinatrust Commercial Bank, Hua Nan Commercial Bank and Mega International Commercial Bank.

Guaranteed by Universal Cement Corp, the three-year debt package is split into a $45 million term loan and a $45 million standby letter of credit which is served to secure the term loan borrowed by Huizhou Universal Cement. The total deal size cannot exceed $45 million. The term loan offers a pricing of 115bp over three-month or six-month Libor and the letter of credit tranche features an L/C fee of 115bp.

Final allocations saw the leads contribute $5 million each, while joint arrangers Bank Sinopac and Land Bank of Taiwan took $4.2 million apiece. Industrial Bank of Taiwan, Shanghai Commercial & Savings Bank and Taipei Fubon Commercial Bank joined in with $3.8 million each, and co-arrangers Chang Hwa Commercial Bank and Taiwan Cooperative Commercial Bank ended up with $2.6 million apiece.

Proceeds are for working capital purposes.

TYC Brother Industrial's NT$3.6 billion revolving credit received an overwhelming response and was inked on November 13 via coordinating arrangers Chang Hwa Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank, Land Bank of Taiwan, Mega International Commercial Bank, Ta Chong Bank and Yuanta Commercial Bank. The deal was upsized from NT$3 billion after being oversubscribed by 115% to NT$6.45 billion.

The five-year revolver is priced at 75bp over the 60- to 180-day secondary CP rate and features an interest rate floor of 1.9% after-tax and a commitment fee of 10bp.

Final allocations saw the leads contribute NT$340 million each, with the exception of First Commercial Bank which pledged NT$420 million. Co-arranger Bank Sinopac gave NT$160 million and manager Industrial Bank of Taiwan took NT$140 million. Bank of Taiwan, Chinatrust Commercial Bank, DBS Bank, E.Sun Commercial Bank, Shanghai Commercial & Savings Bank and Taishin International Bank lent NT$110 million each, while Bank of Kaohsiung and Cathay United Bank came in with NT$80 million each. Far Eastern International Bank joined in with NT$50 million.

Proceeds are to refinance a NT$3.6 billion dual-tranche facility signed in 2006 and for working capital purposes.


A $200 million three-year term loan for Thoresen Thai Agencies was signed last week via sole bookrunner Kasikornbank.

Guaranteed by the borrower's dry bulk shipping subsidiaries, syndication saw the sole lead take $100 million, while Krung Thai Bank lent $50 million. Export-Import Bank of Thailand committed $30 million while Mizuho Corporate Bank pledged $20 million.

Proceeds are to support the borrower's domestic and overseas expansion in a variety of businesses. 

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