Loan Week, October 13-19

A roundup of the latest syndicated loan market news.

AGL Energy has mandated Royal Bank of Scotland and Westpac to lead arrange a A$2 billion facility. Proceeds are to refinance existing debt and for general corporate purposes.


Market talk is that CNPC, a joint venture between PetroChina and China National Petroleum, is seeking $1.4 billion to finance its investment in Kazakhstan. The 10 year financing will be arranged by Calyon, Standard Chartered, ING Bank and Commonwealth Bank of Australia. Pricing is said to be around the 80bp mark.

The borrower last tapped the market in September 2005 when it raised $4.18 billion via a bridge financing. That facility was arranged by Citigroup, Sanpaolo IMI and Commonwealth Bank of Australia.

Hong Kong

BALtrans Logistics (Hong Kong)Æs HK$250 four year million dual-tranche fundraising was signed on October 6. BNP Paribas (Hong Kong) is the sole mandated arranger.

The facility consists of a HK$187.5 million term loan and a HK$62.5 million revolver. The margin is 69bp over Hibor. Mandated arrangers BNP Paribas (Hong Kong) committed HK$30 million, arrangers Industrial and Commercial Bank of China (Asia), Mizuho Corporate Bank and, SMBC took HK$28 million apiece, Bank of East Asia held HK$25 million, Bank of China (Macau), KBC Bank (Hong Kong) and United Overseas Bank took HK$23 million each while Dah Sing Bank and Wing Lung Bank joined as co-arrangers with tickets of HK$22 million and HK$20 million.

Proceeds will be used to refinance existing debt and provide for general corporate requirements.

Rumor has it that Kingway Brewery is tapping the market to raise HK$400 million to expand capacity. Around seven banks are bidding for the deal. Proceeds will be used to build plants and for general working capital. A formal mandate is expected to be announced by the end of this month.

Melco PBL Entertainment, a joint venture between Hong Kong based Melco International Development and AustraliaÆs Publishing & Broadcasting, has mandated ANZ Banking Group, Bank of America Securities Asia, Barclays Capital and Deutsche Bank to arrange its $1.1 billion facility. Proceeds will be used to finance its flagship casino resort in Macau.

Syndication of Sino-French Water DevelopmentÆs HK$1.4 billion financing is expected to close today (Friday). The seven year facility has secured commitments from several banks so far. Mandated arrangers are Bank of China (Hong Kong), BNP Paribas, Calyon and ICBC Asia. Proceeds will be used to refinance a HK$1.2 billion facility signed in September 2001.

Hong Kong-listed Shanghai Industrial HoldingsÆ HK$3 billion facility has been launched via a syndicate of eight banks. Mandated lead arrangers are Bank of China (Hong Kong), BNP Paribas, Calyon, CCB International Finance, DBS Bank, Hang Seng Bank, HSBC and SMBC. BNP Paribas and HSBC are running the books.

The five year facility is split equally into a term loan and a revolver. It carries a spread of 27bp over Hibor and is being marketed on two levels. Banks joining as arrangers receive 25bp, translating to a top level all-in of 32bp while those joining as lead managers earn 17.5bp for an all-in of 30.5bp.

Funds will be borrowed via a special purpose vehicle, SIHL Finance, which is wholly owned by the borrower. Proceeds will be used to refinance existing debt and to provide for working capital requirements. Banks have until October 31 to revert.


Bharat Petroleum CorpÆs $200 million facility has been launched into general syndication via mandated lead arrangers BNP Paribas, Calyon, Mizuho Corporate Bank and Standard Chartered. All mandated lead arrangers are running the books. BayernLB and DZ Bank joined as equal status arrangers prior to the launch.

The five year financing features a margin of 59bp over Libor. Banks are being invited to join on three levels. Lead arrangers contributing $20 million or above receive 35bp, leading to a top level all-in of 66bp over Libor; arrangers providing $10 million to $19 million get 25bp for an all-in of 64bp and co-arrangers pledging $5 million to $9 million earn 15bp for an all-in of 62bp.

Banks have until the end of this month to respond.

ING Vysya Bank signed a $100 million 364-day term loan on October 18. Mandated arrangers BayernLB, DBS Bank, ING, Lloyds Bank and Standard Chartered Bank lent $17.4 million apiece while arranger Erste bank pledged $10 million and lead manager UniCredit Group ended up with $3 million. Proceeds are for general corporate purposes.

Market talk is that Tata Steel is returning to the market after the completion of its $750 million fundraising early this month. It is said that ABN Amro, Deutsche Bank and Standard Chartered have been hired to lead arrange a $6.5 billion bridge financing. The facility will be used to back the acquisition of Corus Steel worth $10 billion. It could be the largest leveraged buyout in India.

UTI BankÆs $125 million one year credit has been signed. The deal carries a margin of 15bp over Libor. Proceeds are for general corporate purposes.

Mandated arrangers Banca Intesa, Barclays Capital, BNP Paribas, Citigroup, DBS Bank, Lloyds TSB Bank, Natexis Banques Populaires, Oversea-Chinese Banking Corp, Raffeisen Zentralbank Oesterreich (Singapore), and Standard Chartered committed $11.9 million apiece as did arrangers Banca Intesa (Hong Kong), DBS Bank and Lloyds TSB Bank (London). Banca Popolare di Verona e Novara and Zurcher Kantonalbank & St Gallische Kantonalbank also joined as arrangers and provided $3 million each.

PT Bank Ekspor Impor IndonesiaÆs $50 million one year term loan has been signed via sole mandated arranger DBS Bank. Five banks joined the facility as participants and include BayernLB, Mega International Commercial Bank, Natexis Banques Populaires, PT Bank Negara Indonesia (Singapore) and Sumitomo Mitsui Banking Corp (Singapore).

Proceeds are for general corporate purposes.


Softbank Corp has completed syndication of a Ñ179 billion ($1.5 billion) 364-day credit facility with a total of 37 banks participating. Mandated lead arrangers are Citigroup and Mizuho Corporate Bank. The borrower last visited the market when it raised Ñ1.28 trillion ($11.1 billion) to fund the Ñ1.8 trillion acquisition of VodafoneÆs Japan business.


Bank of Tokyo Mitsubishi-UFJ and Sumitomo Mitsui Banking Corp have been mandated to lead arrange Daikin IndustriesÆ$2.06 billion equivalent financing. Proceeds will be used to acquire MalaysiaÆs OYL Industries. Daikin Industries last borrowed $77 million equivalent in March 2006 via 10 banks.


ICTSI CapitalÆs $120 million bridge facility was signed on October 18 in Manila. A total of 19 banks are participating in the transaction. International Container Terminal Services is providing a guarantee.

Sole mandated arranger ABN Amro took $17 million, arrangers SMBC held $15 million, Standard Chartered Bank pledged $10 million, DBS Bank and KfW provided $9 million each and Calyon lent $7.5 million. Managers DnB NOR Bank committed $4 million, Mega International Commercial Bank and Sumitomo Trust & Banking contributed $3 million each and Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank (Manila), Moscow Narodny Bank and State Bank of India (Osaka) committed $2 million apiece. Proceeds are for general corporate purposes.

Joint mandated lead arrangers DBS Bank and Standard Chartered are yet to close syndication of San Miguel CorpÆs $250 million term facility. Thus far, it has secured commitments from at least five banks. They are Bank of Tokyo-Mitsubishi UFJ, CIMB, Citic Ka Wah Bank, NordLB and Mizuho Corporate Bank. Several more banks are still processing credit approvals.

The five year financing is priced at 65bp over Libor and banks have been invited to join on three tiers. Lead arrangers holding $12.5 million or above receive 30bp, leading to a top level all-in of 73.6bp over Libor; arrangers providing $8.5 million to $12.4 million earn 25bp for an all-in of 72.1bp and lead managers taking $5 million to $8.4 million get 20bp for an all-in of 70.7bp.

Proceeds will be used for general working capital and bank responses are due by next Friday (October 27).

GP Batteries International has successfully raised $83 million equivalent from the market. Mandated arrangers are DBS Bank and BNP Paribas.

The transaction is split into S$60 million and $45 million three year term loans with a margin of 81bp over Libor. KBC Bank, Oversea-Chinese Banking Corp, Maybank (Singapore), United Overseas Bank, WestLB (Singapore) and Sumitomo Mitsui Banking Corp (Singapore) are the arrangers. Indian Bank joined as a co-arranger.

Proceeds are to refinance existing debt.

South Korea

Allocations have been finalised for Samsung CorpÆs $200 million five year financing. There are 10 banks participating in the deal. Mandated arrangers Bank of Nova Scotia, DBS Bank and Korea Exchange Bank contributed $28.5 million apiece, Arab Bank took $25 million and Industrial Bank of Korea, ING Bank and Mizuho Corporate lent $20 million each. Arrangers Shinhan Asia held $14.5 million while Kexim Bank and Woori Bank ended up with tickets of $7.5 million apiece. Proceeds are to refinance existing debt.


MitacÆs NT$1.2 billion five year term loan has been allocated. Mandated arrangers Cathay United bank, E Sun Commercial Bank, First Commercial Bank, Hua Nan Commercial Bank and Taiwan Business Bank held NT$200 million each while Chang Hwa Commercial Bank and Shanghai Commercial & Savings Bank committed NT$100 million apiece. Signing will take place next week.

Wistron CorpÆs $240 million 364-day revolver has been decreased from $300 million. Mandated arrangers are Cathay United Bank, Fuhwa Bank, HSBC (Taipei), Hua Nan Commercial Bank, Land Bank of Taiwan, Oversea-Chinese Banking Corp, Shanghai Commercial & Savings Bank and Taiwan Business Bank contributing $30 million apiece.

The facility carries a margin of 20bp over Libor and proceeds are to refinance the account receivables. The signing ceremony is scheduled for November 3.

Syndication of Yageo CorpÆs NT$3.5 billion fundraising has yet to close. Mandated arrangers are Cathay United Bank, China Development Industrial Bank, First Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial and Shanghai Commercial & Savings Bank.

Eight banks have so far joined as lenders and include Bank of East Asia, Calyon, Chang Hwa Commercial Bank, Central Trust Commercial Bank, Far Eastern International Bank, Fortis Group, Land Bank of Taiwan and Taiwan Business Bank.

Proceeds are for working capital purposes.
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