loan-week-september-1824

Loan week, September 18-24

A roundup of the latest syndicated loan market news.

China

Bank of China (Australia) has been mandated by Yanzhou Coal Mining Mandated as lead arranger and bookrunner for a Rmb20 billion equivalent five-year credit facility, but it has yet to be decided whether the financing will be syndicated.

The deal will be drawn down in either Australian or US dollars. Proceeds are to fund a A$3.3 billion bid for Felix Resources by the borrower's subsidiary at a price of A$16.95 per share.

Hong Kong       

China Resources Cement Holdings' HK$1.2 billion facility has been heavily oversubscribed and upsized from the initial HK$800 million sought, via sole mandated lead arranger and bookrunner Mizuho Corporate Bank.

The term loan features a tenor of three years and banks were allowed to commit in Hong Kong dollars or US dollars. There are a total of 10 lenders in the transaction, including the lead, but the full syndicate has yet to be disclosed.

Proceeds are for capital expenditure purposes.

India

Syndication of Bhushan Steel's $100 million project financing is still ongoing via sole bookrunner State Bank of India. The seven-year deal has a $75 million greenshoe option.

So far, Allahabad Bank, Bank of Baroda, Canara Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Punjab National Bank (International), Syndicate Bank and Union Bank of India have joined in.

Proceeds are for project financing purposes.

Standard Chartered Bank and State Bank of India have been mandated as bookrunners to arrange a $300 million five-year loan for HCL Technologies. The leads have underwritten $150 million each.

Proceeds are to repay a £400 million bilateral bridge loan, which was signed in November 2008 to fund the acquisition of Axon. Syndication is expected to be launched within the first half of October.

Jhajjar Power's $1.1 billion-equivalent dual-currency facility was signed on September 17 via sole mandated lead arranger and bookrunner IDBI Bank.

The 15 year multi-tranche loan is split into a Rs34 billion term loan, a $112 million tranche and a Rs12.7 billion letter of credit facility.

Final allocations saw the lead lend Rs12.8 billion, while participants Power Finance Corporation pledged Rs6.8 billion and Rural Electrification Corporation commited Rs6.2 billion. Bank of India committed Rs3.4 billion and Infrastructure Development Finance Co (IDFC) gave Rs3 billion. Allahabad Bank, Dena Bank and Oriental Bank of Commerce took Rs2.8 billion, Rs2.4 billion and Rs2.1 billion respectively, while State Bank of Patiala provided Rs1.7 billion. United Bank of India and State Bank of Mysore pledged Rs1.4 billion each, while Bank of Baroda lent Rs1.2 billion. PTC India Financial Services and State Bank of Travancore provided Rs830 million and Rs690 million respectively. India Infrastructure Finance (UK) gave $112 million in the dollar tranche.

Proceeds are to finance the implementation of a 1320MW coal-based power project in the Jhajjar district of Haryana, India.

Indonesia

Adaro Indonesia's $500 million debt was well-received and is expected to sign shortly on a club basis via mandated lead arrangers ANZ, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Chinatrust Commercial Bank, DBS, HSBC, ING, Oversea-Chinese Banking Corp, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank. The deal was heavily oversubscribed to $1.5 billion but the borrower has decided not to upsize the facility.

The all-in pricing is below 400bp over Libor.

Proceeds are for capital expenditure and general corporate purposes.

Netherlands

A $505 million one-year revolving credit for Trafigura Beheer is still ongoing in syndication via bookrunners Agricultural Bank of China, ANZ, DBS, ICBC, Standard Chartered, Sumitomo Mitsui Banking Corp, United Overseas Bank and Westpac.

The deal is priced at 150bp over Libor. Banks are invited to join in at three levels - mandated lead arrangers committing $30 million or above receive 65bp in upfront fees; arrangers holding from $20 million to $29 million earn 55bp and co-arrangers contributing from $10 million to $19 million get 50bp.

Proceeds are for refinancing and working capital purposes. Signing is slated for the end of October.

Korea

A $150 million two-year debt for Daewoo Shipbuilding & Marine Engineering was inked last week via mandated lead arrangers ANZ, Korea Exchange Bank, Natixis and Standard Chartered Bank.

Final allocations saw Natixis and Standard Chartered provide $50 million apiece, while Korea Exchange Bank and ANZ gave $20 million each.

Proceeds are for working capital purposes.

Singapore

British & Malayan Trustees, in its capacity as a trustee for Frasers Commercial Trust, successfully secured a S$500 million three-year term loan on September 23 via mandated lead arrangers Commonwealth Bank of Australia, DBS, Oversea-Chinese Banking Corp and Standard Chartered. The deal was signed on a club basis.

The loan is priced at 265bp over SOR.

Proceeds are to refinance existing bilateral loans.

Tuas Power successfully secured a S$3.2 billion fundraising from mandated lead arranger Bank of China on September 21.

Final allocations saw China Construction bank join the deal with a S$400 million commitment,while different branches of Bank of China contributed a total of S$2.8 billion.

Proceeds are to take out a S$2.3 billion bridge facility signed in March 2008 by Sinosing Power, a subsidiary wholly-owned by Huaneng Power International, which supported Huaneng Power's S$4.2 billion acquisition of Tuas power plant from Temasek Holdings. The bridge facility was provided by 10 offshore banks and is due by September 2009.

¬ Haymarket Media Limited. All rights reserved.

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