loan-week-october-29--november-2

Loan Week, October 29 - November 2

A digest of the latest loan news.
Australia

Australian Gas Light has successfully raised A$2.4 billion from the market via sole mandated lead arranger Commonwealth Bank of Australia. A total of 15 banks are participating.

Joining as arrangers are ANZ Investment Bank, BNP Paribas, Royal Bank of Scotland, Mizuho Corporate Bank, National Australia Bank and Westpac Banking Corp. Co-arrangers are SG Australia, Sumitomo International Finance (Australia) and TD Securities while lead managers are ABN Amro, Bank of Tokyo-Mitsubishi UFJ, BayernLB, Calyon and Citigroup.

The multi-tranche facility consists of a A$500 million 364-day tranche ôAö, a A$750 million three year tranche ôBö, a A$750 million five year tranche ôCö and a A$400 million three year revolving credit tranche ôDö. Proceeds will be used to refinance existing debt and signing was held on October 27.

Hancock Victorian Plantations and Grant Ridge PlantationsÆ A$345 million fundraising has been closed on a club basis. Mandated arrangers Commonwealth Bank of Australia, Rabobank and Westpac came in with holds of A$145 million apiece. Proceeds will be used to refinance existing debt and signing took place on October 16.

The A$218.5 million fundraising for TM Energy (Australia) has been completed. Mandated arrangers ANZ Investment Bank, Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ contributed A$60.7 million each while Fortis Bank joined in as an equal status arranger with a ticket of A$36.4 million.

China

PetroChina and China National Petroleum joint venture CNPC has mandated Calyon, Commonwealth Bank of Australia, ING Bank and Standard Chartered to lead arrange its $1.4 billion financing. Proceeds will be used to finance its investment in Kazakhstan. 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.

Joint mandated lead arrangers HSBC and Mizuho Corporate Bank are set to launch Long Chen (Zhejiang) Paper FactoryÆs $68 million fundraising into syndication. The five year facility will be used to fund the construction of a paper factory in Zhejiang and for working capital purposes.

Hong Kong

Cathay Pacific has mandated Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ and Shanghai Commercial & Savings Bank to lead arrange its $280 million aircraft financing. The 10 year deal is likely to close as a club according to a banker in the arranging group. Proceeds will be used to fund the purchase of five Boeing 747-400 cargo aircraft. The borrower last tapped the market when it raised $600 million in August 2006. That facility was arranged by SMBC, DZ Bank and Fortis Bank.

The HK$1.4 billion facility for Sino-French Water Development has been closed via mandated arrangers Bank of China (Hong Kong), BNP Paribas, Calyon and ICBC Asia. The seven year facility has been oversubscribed and saw 13 banks join in general syndication. However, the facility size is unlikely to be increased. Proceeds will be used to refinance a HK$1.2 billion loan signed in September 2001. Allocations will be finalised shortly and signing is targeted for next week.


Joint mandated coordinating arrangers and bookrunners Standard Chartered and SMBC have launched River Trade TerminalÆs HK$2 billion financing into general syndication. The deal is split into a HK$1.7 billion term loan and a HK$300 million revolving credit.

The five year facility features a margin of 28bp over Hibor and banks have been invited to join on three levels. Coordinating arrangers lending HK$250 million or above get 30.5bp, leading to a top level all-in of 34.1bp. Arrangers taking HK$150 million to HK$249 million earn 25bp for an all-in of 33bp and senior managers providing HK$50 million to HK$149 million receive 20bp for an all-in of 32bp.

SMBC is the documentation and facility agent. Sun Hung Kai Properties and Hutchison Port Holdings are acting as the guarantors and proceeds will be used for general corporate purposes. Financial close is slated for November 8.

Shangri-la Asia TreasuryÆs HK$3 billion revolving/term facility has been launched into both sub-underwriting and general syndication via mandated coordinating arrangers Bank of China (Hong Kong), DBS Bank, HSBC and Standard Chartered. All mandated coordinating arrangers except Bank of China (Hong Kong) are running the books.

The five year financing carries a spread of 29bp over Hibor and is being marketed to banks on three tiers. Mandated coordinating arrangers holding HK$300 million or above earn 27.5bp, translating to a top level all-in of 34.5bp; arrangers contributing HK$200 million to HK$290 million get 20bp for an all-in of 33bp while senior managers pledging HK$100 million to HK$190 million receive 15bp for an all-in of 32bp.

Shangri-la Asia is providing a guarantee. Proceeds will be used for working capital. Banks have until November 10 to revert.

India

Indian Oil CorpÆs $200 million loan is likely to close on a club basis via mandated lead arrangers BNP Paribas, Calyon, Citigroup, HSBC, ING Bank, Mizuho Corporate Bank and Standard Chartered. Pricing is expected to be around 40bp. Proceeds will be used to refinance an existing facility signed in December 2004.

Rumor has it that Housing Development Finance Corp (HDFC) is tapping the market to raise $200 million worth of loans to refinance existing debt. The borrower last came into the market when it raised Ñ12 billion ($109 million) via Calyon, State Bank of India, BayernLB and SMBC. That facility was priced at 29bp over YenLibor and featured a top level all-in of 41bp over YenLibor.

Philippines

Joint mandated lead arrangers DBS Bank and Standard Chartered have extended the financial close for San MiguelÆs $250 million fundraising. Thus far, the five year facility has received commitments from Bank of Tokyo-Mitsubishi UFJ, Citic Ka Wah Bank, CIMB, Mizuho Corporate Bank and NordLB. The facility is priced at 65bp over Libor, translating to a top level all-in of 73.6bp. Proceeds will be used for general corporate purposes.

Singapore

Joint mandated lead arrangers and bookrunners Barclays Capital and Standard Chartered are still syndicating TrafiguraÆs $200 million revolving credit. The 364 day facility saw six banks join in senior syndication. They are Arab Banking Corp, Arab Petroleum Investment Corp, Bumiputra-Commerce Bank, Mizuho Corporate Bank, SMBC and United Overseas Bank.

The 364-day facility pays a margin of 85bp over Libor and banks have been invited to participate on three levels. Banks joining as lead arrangers pledging $15 million or above receive a participation fee of 20bp for a top level all-in of 105bp; those joining as arrangers holding $10 million to $14 million earn 15bp for an all-in of 100bp while lead managers committing $5 million to $9 million get 10bp for an all-in of 95bp.

Proceeds will be used for general corporate purposes. Financial close is scheduled for early next week.

Thailand

Banpu Public has successfully raised $145.5 million from the market via a syndicate of four banks. Sole mandated lead arranger Standard Chartered is providing $38 million while lead arranger United Overseas Bank is committing $37.5 million. Arrangers are Bangkok Bank and Siam Commercial Bank with commitments of $35 million apiece.

Proceeds will be used to support a Greenfield power project in Thailand. Signing took place on October 25.

Taiwan

Chia Her Industrial has completed syndication of a NT$1.8 billion facility with a total of seven banks. The five year facility features a margin of 235bp over the180 days primary CP rate.

Joint mandated lead arrangers are Chinatrust Commercial Bank and First Commercial Bank committing NT$595 million and NT$463 million respectively. Lead manager is Chang Hwa Commercial Bank pledging NT$198 million. Four other managers are Cathay United Commercial Bank holding NT$165 million, Bank of Taiwan taking NT$151 million, Mega International Commercial Bank contributing NT$132 million and Shin Kong Commercial Bank providing NT$96 million.

Proceeds will be used to refinance existing debt and provide for working capital requirements. Signing took place on Wednesday (November 1).

The NT$28 billion ($841 million) leveraged buyout of China Network Systems has been launched into sub-underwriting via joint mandated lead arrangers Citigroup and Chinatrust Commercial Bank. The deal is split into a NT$16.75 billion seven year term loan ôAö, a NT$9.5 billion 8.5 year term portion ôBö and a NT$1.75 billion 8.5 year revolver ôCö. Proceeds will be used to support the leveraged buyout of China Network Systems by South Korea private equity firm MBK Partners.

Bank of Taiwan, Chinatrust Commercial Bank, China Development Industrial Bank and Mega International Commercial Bank have bagged the mandate for China Petrochemical DevelopmentÆs NT$20.7 billion financing.

The five year loan is split into a NT$9 billion revolving credit, an NT$8.7 billion term loan and a NT$3 billion guarantee facility. Proceeds will be used to refinance existing debt. A wider syndication will be launched shortly.

Sole mandated lead arranger Chang Hwa Commercial Bank has closed syndication of Digimedia TechnologyÆs NT$1 billion financing. The dual tranche facility saw eight banks join in general syndication. They are Bank of Taiwan, Central Trust of China, Hua Nan Commercial Bank, International Bank of Taipei, Land Bank of Taiwan, Oversea-Chinese Banking Corp, Sunny Bank and Taiwan Business Bank.

The deal comprises a NT$600 million 1.5 year term loan and a NT$400 million five year revolver. Proceeds will be used for general corporate purposes. Signing is targeted for November 16.

International Applied Materials TechnologyÆs $18 million facility has been allocated via a syndicate of 11 banks. The three year financing is priced at 67.5bp over Libor. Proceeds will be used to refinance existing debt and for working capital.

Mandated coordinating arrangers are Chinatrust Commercial Bank and Mega International Commercial Bank holding $2.95 million and $2.75 million. Co-arrangers are International Bank of Taipei and Land Bank of Taiwan committing $1.7 million and $1.5 million respectively. Seven other managers are taking $1.3 million apiece. They are Cathay United Bank, Central Trust of China, Bank of Kaoshiung, Fuhwa Commercial Bank, Bank of Overseas Chinese, Chang Hwa Commercial Bank and Shin Kong Commercial Bank.

Sole mandated lead arranger Hua Nan Commercial Bank has been mandated to arrange Chi Mei CorpÆs NT$10 billion fundraising. The five year facility carries a margin of 44bp over the primary CP rate. Proceeds will be used to refinance an existing facility signed in January 2002. A wider syndication is expected to be launched early next week.
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