Loan Week, October 20-26

A roundup of the latest syndicated loan market news.

Hope Downs Iron Ore has successfully raised A$370 million from the market via mandated arrangers BNP Paribas, National Australia Bank and Royal Bank of Scotland. The facility consists of A$315 million, A$35million and A$20 million ten year tranches. Rio Tinto Minera SA (RTM) and Kumba Resources are sponsoring the deal.

Mandated arrangers BNP Paribas committed A$100 million and National Australia and Royal Bank of Scotland held A$85 million each while Bank of Scotland and Commonwealth Bank of Australia joined as lenders with tickets of A$50 million apiece.

Proceeds are to support a mine construction project in the Pilbara region of Western Australia.

Santos Finance Unit has mandated Commonwealth Bank of Australia to lead arrange a A$606 million facility. Santo Finance tapped the market via a A$350 million term loan in 1996. ANZ Investment Bank, Bank of America, Citibank (Australia), Commonwealth Bank of Australia and JP Morgan (Australia) were the mandated arrangers.

Rivercity Motorway Finance has signed a A$1.8 billion dual tranche fundraising with a syndicate of 24 banks. Proceeds are to support the North South Bypass Tunnel project in Brisbane Queensland.

The facility is split into A$1.3 billion and A$503 million four year, two months loans. Mandated arrangers ABN Amro, Calyon, National Australia Bank and WestLB provided A$120 million apiece and HSBC lent A$82 million. Arrangers ANZ Investment Bank, BBVA (Singapore), China Construction Bank, Commonwealth Bank of Australia, Depfa Bank, HypoVereinsbank (Singapore), ICBC (Asia), KBC Bank, United Overseas Bank (Sydney) and Westpac held A$82 million each, co-arranger DZ Bank (Hong Kong) took A$73 million while lead managers Allied Irish Bank contributed A$71 million, BayernLB (Hong Kong), Fortis Bank, HSH Nordbank, Mega International Commercial Bank and Oversea-Chinese Banking Corp joined with tickets of A$50 million apiece. Erste Bank and NordLB (Singapore) ended up with A$33 million and A$30 million respectively.


Asia Timber ProductÆs $86 million financing has yet to reach financial close. ABN Amro and Royal Bank of Scotland are the mandated arrangers. Proceeds will be used for working capital purposes. Banks have until mid-November to revert.

China Special Steel HoldingsÆ $25 million three year fundraising was signed on Oct 20 via sole mandated arranger Citic Ka Wah Bank. The deal offers a spread of 115bp over Libor. Proceeds are for general corporate purposes.

Weiqiao TextileÆs $280 million three year term loan has been signed and allocated. The facility offers a margin of 110bp over Libor. Proceeds are to refinance exiting debt and to provide for working capital requirements.

Mandated arrangers Bank of China (Shangdong) and Royal Bank of Scotland took $30 million apiece, China Construction Bank (Hong Kong) held $25 million and Bank of Tokyo-Mitsubishi UFJ, Commerzbank (Hong Kong), Deutsche Bank (Beijing), Mizuho Corporate Bank and WestLB contributed $20 million apiece. Arrangers Bumiputra-Commerce Bank (Hong Kong), Norinchukin Bank (Singapore) and Sanpaolo IMI S.p.A. (Shanghai) lent $10 million each. Joining as senior managers are Banca Intesa (Shanghai) and Bank of China (Macau) contributing $7.5 million apiece, State Bank of India (Hong Kong) and Korea Exchange Bank (Hong Kong) pledging $7 million each, Bank of China (Sydney) taking $6 million and Asia Commercial Bank (Shenzhen), Korea Development Bank (Shanghai), Ping An Bank (Fuzhou), Shanghai Commercial Bank, UBAF (Hong Kong) and United Overseas Bank (Beijing) ending up with $5 million apiece.

Hong Kong

Rumor has it that Hong Kong Disneyland is sounding out banks for a HK$3.2 billion facility to refinance an existing loan signed in November 2000. The original loan was arranged by Chase Manhattan Asia which brought in 27 other banks, including Bank of China (Hong Kong), BNP Paribas, HSBC and Standard Chartered. The borrowing entity was Hong Kong International Theme Parks, which is a joint venture between US-based Disneyland and the Hong Kong government. The project financing was used to fund the construction and development of the Disneyland theme park in Hong Kong.

Joint mandated lead arrangers Standard Chartered and SMBC have won the mandate for River Trade TerminalÆs HK$2 billion financing. The five year facility is split into a HK$1.7 billion term loan and a HK$300 million revolving credit. Sun Hung Kai Properties and Hutchison Port Holdings are acting as the guarantors. A wider syndication will be launched shortly.

Tianjin Development Holdings has completed syndication of a HK$2 billion fundraising with a total of 21 banks joining in the deal. The five year financing is split between a HK$860 million term loan and a HK$1.14 billion revolver which will then be converted into a term loan three years after the drawdown. It is priced at 47bp and offers a top level all-in of 52bp over Hibor.

Mandated coordinating arrangers Calyon, Rabobank, HSBC and Hang Seng Bank are taking HK$170 million each while Bank of China (Hong Kong), Bank of East Asia, Bank of Tokyo Mitsubishi UFJ and Mizuho Corporate Bank are pledging HK$160 million apiece and came in as equal status coordinating arrangers.

Arrangers Bank of China (Shanghai), China Construction Bank (Hong Kong), ICBC Asia and Nan Yang Commercial Bank are contributing HK$83 million each. Senior managers are BNP Paribas, OCBC and Wing Lung Bank holding HK$56 million apiece while six others û Bank of Communications (Hong Kong), Dah Sing Bank (Shenzhen), Liu Chong Hing Bank, Maybank, Public Bank (Hong Kong) and Shanghai Pudong Development Bank û joined with holds of HK$30 million each.

Proceeds will be used to refinance an existing facility signed in July 2003 and for general corporate purposes. Signing is targeted for early November.

The $100 million yen equivalent financing for ING Vysya Bank has been completed via a syndicate of seven banks. The 364 day facility offers a margin of 12.5bp over Libor.

Mandated lead arrangers are BayernLB, DBS Bank, ING Bank, Lloyds TSB Bank and Standard Chartered providing $17.4 million each. Lead arrangers are Erste Bank and UniCredito Italiano (Hong Kong) committing $10 million and $3 million respectively.

Proceeds will be used to refinance existing debt and signing was held on October 18.

Syndication of HDFCÆs $100 million yen equivalent facility has yet to close with banks expected to revert by Friday (today). Mandated lead arrangers DBS Bank, DZ Bank, RZB Austria, Mizuho Corporate Bank and Natexis Banques Populaires have been joined by a number of banks. Several others are said to be in the final stage of getting approvals.

The deal carries a margin of 13bp over Libor and banks have been invited to join on three levels. Arrangers providing $10 million or above get 11bp, translating to a top level all-in of 24bp over Libor; lead managers contributing $5 million to $9 million receive 10bp for an all-in of 23bp while managers taking $2 million to $4 million earn 9bp for an all-in of 22bp.

Proceeds will be used to refinance an existing facility signed on October 2005. Signing is scheduled for early November.

Reliance PetroleumÆs $1.5 billion project financing has been signed and allocations finalised. A total of 51 banks are participating in the deal.

Mandated lead arrangers ABN Amro, Banc of America Securities Asia, BBVA, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, Mizuho Corporate Bank, Standard Chartered, State Bank of India and SMBC took $58.2 million apiece, Bank of Baroda, BayernLB (Hong Kong), Fortis Bank, HSH Nordbank, Hypovereinsbank (Hong Kong), Industrial & Commercial Bank of China (Asia), KBC Bank, KfW IPEX-Bank, Mashreqbank, Royal Bank of Scotland and WestLB committed $53.8 million each and Bayerische Hypo-und Vereinsbank and Banca Intesa joined with tickets of $50 million apiece.

Senior lead arrangers BBVA, Natexis Banques Populaires (Hong Kong), NordLB (Singapore) and Union National Bank provided $41.2 million each and China Construction Bank (Hong Kong) pledged $38.2 million.

Lead arrangers Arab Banking Corp and Sanpaolo IMI lent $37.5 million apiece and arranger IKB Deutsche Industriebank provided $30 million. Lead managers DnB NOR Bank (Singapore) took $29 million, Arab Bank and Nedbank Capital held $25 million apiece, Mega International Commercial Bank committed $20 million while Canara Bank (London), Cathay United Bank, Chinatrust Commercial Bank, National Bank of Kuwait (Singapore), Syndicate Bank and Taiwan Business Bank contributed $15 million apiece.

Managers Bank SinoPac (Offshore Banking Branch) and BBK B.S.C. pledged $10 million each and Banca Monte dei Paschi di Siena (Hong Kong), Bank of Kaohsiung, Dah Sing Bank, Taiwan Shin Kong Commercial Bank, SBI International (Mauritius) and Sunny Bank committed $5 million apiece.

Proceeds will be used to support the development of a petrochemical complex and refinery project in India. Signing is scheduled for today (Friday).

Tata SonÆs $150 million financing has been completed on a club basis. The seven year facility features a margin of 52.5bp over Libor. Mandated arrangers are Banc of America Securities Asia, Barclays Capital and Standard Chartered each taking $50 million. Standing Chartered is the documentation and facility agent. Proceeds will be used for general corporate purposes. Signing took place on October 12.

The $250 million fundraising for San Miguel is still syndicating via joint mandated lead arrangers DBS Bank and Standard Chartered. The five year facility has received commitments from seven banks. They are Bank of Tokyo-Mitsubishi UFJ, Citic Ka Wah Bank, CIMB, Erste Bank, Mizuho Corporate Bank, NordLB and UniCredito Italiano. Proceeds will be used for general corporate purposes. Financial close is slated for the end of this month.


Lend LeaseÆs S$600 million four year financing has been launched into syndication via mandated lead arrangers HSBC and Oversea-Chinese Banking Corp. The transaction offers a spread of 63bp over SOR. Arrangers committing S$75 million or more earn 16bp, co-arrangers providing S$50 million or above receive 12bp and lead managers contributing S$30 million or more get 8bp. Proceeds are for general corporate purposes.

Tata Steel Asia HoldingsÆ $1.78 billion 13 month loan was signed on October 14. Mandated lead arrangers ABN Amro and Standard Chartered contributed $890 million apiece. The transaction offers a margin of 25bp over Libor. Tata Steel is providing a guarantee and proceeds are for general corporate purposes.


Alpha Beta EnterpriseÆs NT$950 million multi-tranche facility has been closed and allocated. Sole mandated arranger Mega International Commercial Bank took NT$4.75 million while participants Chang Hwa Commercial Bank and Land Bank of Taiwan held NT$2.4 million apiece. The facility is split into a NT$375 million seven year term loan and NT$375 million and NT$305 million 10 year portions with a margin off 38bp over the one-year Chinese post office savings rate. Proceeds will be used for working capital and to refinance existing debt. The signing ceremony is expected to take place in November.

Mega International Commercial Bank has been mandated to arrange Farglory DomeÆs NT$14.3 billion dual tranche term loan. The deal is split into NT$14 billion and NT$300 million 20 year term loans. Proceeds are to support the Taipei Dome project.

Solar Applied Material Technology signed a NT$1.8 billion three year revolver on October 12 in Taipei. Mandated arrangers Chinatrust Commercial Bank and Mega International Bank held NT$200 million each while co-arrangers Taiwan Cooperative Bank and International Bank of Taipei took NT$200 million and NT$100 million respectively.

Lead managers Bank of Kaohsiung, Cathay United Bank and China Development Industrial Bank contributed NT$120 million each and Taishin International Bank committed NT$100 million. Six banks joined as managers - Bank of Overseas Chinese, Chang Hwa Commercial Bank, Central Trust of China, Fuhwa Bank, Land Bank of Taiwan and Shin Kong Commercial Bank - with tickets of NT$100 million apiece and E Sun Commercial Bank ended up with NT$90 million.

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