Loan Week, September 8 - September 15

A round up of the latest syndicated loan market news.

Joint mandated coordinating arrangers ANZ Banking Corp and Citibank (Singapore) have completed the S$900 million fundraising for Toll Finance, ST Logistics and SOPS. The three year facility saw eight banks join in general syndication.

Mandated coordinating arranger Citibank ended up with S$60 million while six lead arrangers lent S$120 million each. They were BNP Paribas (Singapore), DBS Bank, DnB NOR Bank (Singapore), Oversea-Chinese Banking Corp, Standard Chartered (Singapore) and United Overseas Bank. ABN Amro (Singapore) and Westpac (Singapore) took S$60 million apiece and joined as managers.

The parent company Toll Holdings is providing a guarantee. Proceeds will be used for general corporate and working capital purposes. Signing was held on September 6.

Hong Kong

China Resources Land signed a HK$2.5 billion five year credit facility on September 7. The transaction has been upsized from HK$2.4 billion due to an overwhelming response. China Resources Land last tapped the market in October 2002 when it raised $60 million via a three year term loan.

The deal comprises a margin of 34bp over Hibor. Co-arrangers lending HK$150 million and over earn 22.5bp and senior managers committing HK$75 million to HK$140 million receive 15bp.

Mandated arrangers Bank of China (Hong Kong) took HK$450 million, Calyon, DBS Bank, HSBC and Standard Chartered Bank (Hong Kong) held HK$355 million each and Bank of Tokyo-Mitsubishi UFJ provided HK$350 million. Co-arranger Citic Ka Wah Bank joined with a ticket of HK$150 million. Nanyang Commercial Bank and Bank of China (Macau) joined as managers and ended up with HK$100 million and HK$80 million respectively.

Proceeds are for general corporate purposes and to refinance existing debt.

Signing for Hutchison International FinanceÆs HK$9 billion financing took place last Saturday (September 9). Mandated coordinating arrangers Bank of China (Hong Kong), Bank of Tokyo-Mitsubishi UFJ, Calyon, DBS Bank, Hang Seng Bank, HSBC, ICBC Asia, Mizuho Corporate Bank, Royal Bank of Scotland, Standard Chartered, SMBC and WestLB ended up with HK$750 million apiece.

Proceeds will be used to refinance a HK$12 billion dual tranche facility signed in July 2001, comprising a HK$9 billion five year tranche due in November and a HK$3 billion seven year tranche due in 2008.

IFC DevelopmentÆs HK$10.3 billion six year financing was launched on Wednesday (September 13) via a consortium of 13 banks. The arranger group comprises Bank of China (Hong Kong), Fortis Bank, Standard Chartered, BNP Paribas, ABN Amro, CCB International Finance, ICBC (Asia), Bank of Tokyo-Mitsubishi UFJ, BayernLB, DBS Bank, Mizuho Corporate Bank, Rabobank and SMBC.

Banks have been invited to join on three tiers. Lead managers contributing HK$290 million or above get 30bp over Hibor, senior lead managers taking HK$190 million or more earn 27bp and co-arrangers lending HK$90 million or above receive 24bp.

All the mandated arrangers are running the books and Bank of China (Hong Kong) is acting as both facility and documentation agent. Proceeds will be used to refinance a HK$7 billion facility signed in October 2000. Banks have until September 27 to respond.

Sole mandated lead arranger Bank of China (Hong Kong) has yet to close syndication of Nine Dragons PaperÆs $350 million fundraising with banks expected to revert by today (Friday). The facility has received commitments from at least 15 banks and several more banks are still in the final stage of gaining credit approvals.

The four year financing features an average life of 3.6 years and is priced at 55bp over Libor. In sub-underwriting, banks underwriting $50 million or above earn an underwriting fee of 10bp and a management fee of 37bp, translating to a top level all-in of 68bp over Libor. Those committing $40 million or above on a take-and-hold basis receive 43.5bp for an all-in of 67bp.

Banks are also invited to join on three tiers in general syndication. Arrangers contributing $20 million or above are paid 36bp for an all-in of 65bp, lead managers providing $10 million to $19 million earn 32.4bp for an all-in of 64bp and managers committing $5 million to $9 million get 28.8bp for an all-in of 63bp.

Proceeds will be used for working capital purposes and signing is targeted for the end of September.

Mandated coordinating arrangers and bookrunners Calyon, HSBC and Rabobank have launched Tianjin Development HoldingsÆ HK$2 billion equivalent financing into general syndication. The facility is split into a HK$900 million tranche æAÆ and a HK$1.1 billion equivalent revolving credit (tranche æBÆ) that will convert into a term loan three years after the drawdown.

The five year facility carries a margin of 47bp over Hibor or Libor and is being marketed on three tiers. Coordinating arrangers providing HK$300 million equivalent or above get 25bp, translating to a top level all-in of 52bp, arrangers holding HK$150 million to HK$290 million equivalent take 20bp for an all-in of 51bp and senior managers committing HK$50 million to HK$140 million equivalent earn 15bp for an all-in of 50bp.

Hang Seng Bank has joined as an equal status coordinating arranger prior to the launch. Tranche æAÆ will be used to refinance an existing facility signed in July 2003 while proceeds of tranche æBÆ are for general corporate purposes. Banks have until September 15 (today) to respond.


ICICI BankÆs $150 million three year financing has been signed. A total of 13 banks are participating in the facility. The borrower last signed a $40 million three year facility in March 2006 via sole mandated arranger Citic Ka Wah Bank.

Mandated arrangers are ABN Amro, Banca Intesa, Bank of America, Bank of Tokyo-Mitsubishi UFJ, DBS Bank, Natexis Banques Populaires and RZB Austria. Lead managers are Bank of China and Mega Commercial. Manager is Swedbank while BPNV, Taiwan Business Bank and Woori Bank joined as lenders.

Proceeds are for general corporate purposes.

Software Development Systems has successfully raised $368 million via a syndicate of 14 banks. The financing is split equally into a five year tranche and a seven year revolver, both carrying a margin of 275bp over Libor.

Mandated lead arrangers Citigroup and Merrill Lynch took $30 million apiece while ten others û ABN Amro, Aozora Asia Pacific Finance, BNP Paribas, Calyon, Chinatrust Commercial Bank, DBS Bank, General Electric Capital, Mizuho Corporate Bank, Taipei Fubon Commercial Bank and Royal Bank of Scotland û joined with holds of $28 million each. Lead arranger Bank of Nova Scotia committed $20 million and arranger Alcentra US lent $8 million.

Citigroup and Merrill Lynch are running the books. Proceeds will be used to fund acquisitions and for general corporate purposes.

Syndication of Reliance PetroleumÆs $1.5 billion facility has yet to close with banks expected to revert by the end of September. The project financing has received a couple of commitments so far.

The deal comprises a 7 + year $950 million tranche that is priced at 80bp over Libor for the first four years and at 140bp over Libor thereafter and a 10 year $550 million tranche that features a spread of 85bp over Libor. Banks are being invited to join on three levels. Lead arrangers holding $50 million or over get 65bp flat, arrangers taking $30 million to $49 million earn 50bp while lead managers lending $15 million to $29 million obtain 35bp.

ABN Amro, Banc of America, Bank of Tokyo Mitsubishi UFJ, BNP Paribas, Calyon, Citigroup, DBS Bank, DZ Bank, HSBC, ICICI Bank, Mizuho Corporate Bank, Standard Chartered Bank, State Bank of India and SMBC are leading the deal. Proceeds will be used to support the development of a petrochemical complex and refinery project in India. The arranger group already pre-funded the financing in August 2006.


Commerce Capital Labuan has completed a $1.1 billion one year fundraising via a consortium of five banks. Bumiputra-Commerce Holdings is providing a guarantee.

Mandated arrangers ABN Amro, Bank of Tokyo-Mitsubishi UFJ, Citibank (Malaysia) and Standard Chartered Bank pledged $239 million apiece while arranger BayernLB provided $150 million.

Proceeds are to refinance a portion of the guarantorÆs short term loans and for working capital purposes.
South Korea

Sole mandated lead arranger JP Morgan has closed syndication of Buy The WayÆs W$113.8 billion ($119.8 million) LBO financing. A total of four banks are participating in the transaction.

The facility consists of a W$41.4 billion six year tranche æAÆ that carries a margin of 250bp over Won certificate of deposits, a W$37.4 billion five year tranche æBÆ that features a spread of 200bp over Won certificate of deposits and a W$35 billion five year revolving credit that pays an interest margin of 200bp over Won certificate of deposits and a commitment fee of 50bp.

Proceeds will be used to fund CCMPÆs leveraged buyout of South KoreaÆs convenience store chain, Buy The Way. Allocations will be finalised shortly.

Kookmin Bank has successfully raised $250 million from the market via a syndicate of 18 banks. The facility is split into $150 million three year and $100 million two year term loans with margins of 12bp and 8bp over Libor respectively. Proceeds are to refinance existing debt.

Mandated arrangers Banc of America Securities Asia, Barclays Capital, BNP Paribas, Calyon, Citigroup Global Markets Asia, DBS Bank, Landesbank Baden-Wuerttemberg (Singapore), Standard Chartered Bank (Hong Kong) and Wachovia Bank held tickets of $18.5 million apiece while lead arrangers BayernLB and KBC Bank provided $18 million each and Bank of China (Hong Kong), Banque et Caisse dÆEpargne de lÆEtat (Luxembourg) and Caixa Geral de Depositos lent $10 million apiece. Arrangers American Express Bank, Deutsche Bank and Oversea-Chinese Banking Corp provided $5 million each and Toronto-Dominion Bank ended up with $2 million.


AU Optronics CorpÆs NT$55.3 billion financing was signed on Wednesday (September 13). The facility was upsized from NT$50.2 billion. A group of 28 banks are participating in the deal.

Mandated arrangers Bank of Taiwan committed NT$5.7 billion, Chinatrust Commercial Bank and Taipei Fubon Bank provided NT$4 billion each, Cathay United Bank, Hua Nan Commercial Bank and Taiwan Cooperative Bank lent NT$3 billion apiece, Bank of Tokyo-Mitsubishi UFJ, Calyon and Mizuho Corporate Bank took NT$2.8 billion each and ABN Amro, Agricultural Bank of Taiwan, Chang Hwa Commercial Bank, E. Sun Commercial Bank, First Commercial Bank, Industrial Bank of Taiwan, ING Bank, Land Bank of Taiwan, Mega International Commercial Bank and Standard Chartered Bank pledged NT$2 billion apiece. DBS Bank and Taiwan Business contributed NT$1 million each, Central Trust of China and Far Eastern International Commercial Bank held tickets of NT$600 million apiece, Bank of Panhsin, Fuhwa Bank and Kaohsiung Bank held NT$300 million each and Hsinchu International Commercial Bank ended up with NT$200 million.

The deal is split into a NT$48 billion seven year term loan and NT$7 billion and NT$280 million five year commercial paper facilities, with a spread of 55bp over the CP rate for each tranche.

B&B International Development has signed a NT$2.6 billion three year financing via mandated arrangers Bank of Taiwan and Cathay United Bank. The margin is 130bp over the two-year post office savings rate. Proceeds are for general corporate purposes. Lai Mao Xiong, Lai Tu and Lai Xin Xiong are providing a guarantee.

Cathay United Bank provided NT$1.6 billion and Bank of Taiwan committed NT$300 million. Managers Bowa Commercial Bank lent NT$200 million, Agricultural Bank of Taiwan and Bank of Kaohsiung held NT$150 million apiece and China United Trust & Investment Corp and Hua Nan Commercial Bank pledged NT$100 million each.

Allocations have been finalised for Chung Hung SteelÆs NT$14 billion multi-tranche fundraising. Mandated arrangers Mega International Bank took NT$1.8 billion and Bank of Taiwan, Chinatrust Commercial Bank, Industrial Bank of Taiwan, Land Bank of Taiwan, Taipei Fubon Commercial Bank, Taishin International Bank, Taiwan Business Bank and Taiwan Cooperative Bank lent NT$920 million apiece.

Co-arrangers are Far Eastern International Bank committing NT$700 million, China Development Industrial Bank, Central Trust of China and Chang Hwa Commercial Bank contributing NT$620 million apiece while managers include Hua Nan Commercial Bank providing NT$460 million, Hsinchu International Bank pledging NT$300 million and Cathay United Bank and Sunny Bank with commitments of NT$230 million each.

Joining as participants are Bank of Overseas Chinese holding NT$220 million and EnTie Commercial Bank, First Commercial Bank, Shanghai Commercial & Savings Bank and Shin Kong Bank with tickets of NT$200 million apiece.

Signing is expected to be held on September 9.

Eastern Asset Management has mandated Taiwan Cooperative Bank to arrange a NT$8.9 billion 12 year term loan. Proceeds will be used to support the development of a new office building. Eastern Asset Management last sounded banks for a NT$3 billion dual tranche financing in July 2004 that was arranged by Hua Nan Commercial Bank.

Cathay United Bank, Chinatrust Commercial Bank and Mega International Commercial Bank have won the mandate for a $60 million five year loan for Grand Prosper (Hong Kong) and Rich Universe International. The deal offers a margin of 53bp over Libor. Proceeds will be used to refinance existing debt and to provide for working capital requirements.

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