Loan week

A round up of the latest syndicated loan market news.

A $600 million five year dual tranche fundraising for Semiconductor Manufacturing International (Shanghai) Corp has been launched into general syndication and increased from an initial $550 million after an enthusiastic response in sub-underwriting. ABN AMRO Bank, Bank of China (Hong Kong), Bank of Communications (Xingu), Bank of Tokyo-Mitsubishi UFJ, China Construction Bank (Pudong), DBS Bank, Fubon Bank (Hong Kong) and Shanghai Pudong Development Bank (Zhangjiang) are the coordinating arrangers and Semiconductor Manufacturing International Corporation is providing a guarantee.

The margin is 110bp over Libor for the first year and linked to a debt to Ebitda grid thereafter. Banks have been invited to join on four levels, where arrangers committing $30 million or more earn 30bp flat, senior managers contributing $20 million to $29 million gain 22.5bp, lead managers providing $10 million to $19 million receive 17.5bp and managers pledging $5 million to $9 million earn 12.5bp.

The loan is split into $393 million and $207 million term loans. Proceeds are to finance the borrowerÆs capital expenditure and general corporate funding requirements. A site visit will be held in Shanghai and signing will take place in May.

Allocations for Fujian Ton Yi Tinplate and Jiangsu Ton YiÆs $46 million fundraising have been finalised. The loan was oversubscribed and increased from $30 million.

Mandated arranger BNP Paribas (Shanghai) held $6 million while co-arrangers Bank of China (Zhangzhou) took $12 million, Bangkok Bank (Xiamen) lent $8 million and Mizuho Corporate Bank (Shanghai) provided $6 million. Joining as lead managers are Hang Seng Bank (Fuzhou) committing $6 million and Dah Sing Bank (Shenzhen) absorbing $5 million. Bank of East Asia took the title of manager with a ticket of $3 million.

The deal will be signed by circulation at the end of the month.

Hong Kong

Allocations for Best Profit and Union EmpireÆs HK$4.5 billion loan have been finalised and signing will be held shortly. Sino Land, Chinese Estates Holdings, Nan Fung Development and Nan Fung Textiles are the guarantors.

Mandated coordinating arrangers DBS Bank and HSBC each held HK$933 million and Bank of China lent HK$483 million. Coordinating arrangers include Bank of Communications committing HK$600 million and Bangkok Bank providing HK$500 million.

Joining as arrangers are Nanyang Commercial Bank contributing HK$400 million and Bank of Nova Scotia pledging HK$300 million. Tai Fung Bank took the title of co-arranger with a ticket of HK$200 million while senior managers include Wing Lung Bank taking HK$100 million and Liu Chong Hing Bank providing HK$50 million.

The HK$3 billion dual tranche facility for China Resources Enterprises should reach financial close shortly. The 10 strong coordinating arranger group comprises Bank of China, Bank of Tokyo-Mitsubishi UFJ, BayernLB, BNP Paribas, Calyon, Citibank, DBS Bank, Mizuho Corporate Bank, Rabobank and Standard Chartered Bank.

Banks are in the process of gaining their approvals and should revert by early next week. The loan is split equally into a term loan and a revolving credit facility that carry a margin of 28bp over Hibor. Arrangers lending HK$150 million to HK$200 million earn 20bp and senior managers providing HK$75 million to HK$140 million gain 15bp.

Proceeds are to refinance a HK$3 billion deal that was signed in October 2002 that offered an all-in of 49.5bp over Hibor, well outside the 32bp featured in the latest transaction.

Citic PacificÆs HK$7.2 billion five and seven year loan is expected to close syndication today (Friday). Citic Ka Wah Bank, Citigroup, DBS Bank, HSBC, Royal Bank of Scotland, Standard Chartered Bank and Sumitomo Mitsui Banking Corp are the bookrunners.

Banks that have so far joined include Tai Fung Bank, Wing Lung Bank and Liu Chong Hing Bank. The five year tranche offers an all-in yield of 35.5bp over Hibor and the seven year pays 39.5bp.

A HK$1.6 billion three year facility for Macquarie Global Property Advisors vehicle Foxhill is in the market via coordinating arranger Standard Chartered Bank. The loan was pre-funded in March.

The deal features a spread of 63bp over Hibor and banks have been invited to join on three levels. Coordinating arrangers lending HK$300 million or above receive 20bp flat, arrangers contributing HK$200 million to HK$299 million earn 15bp and lead managers providing HK$100 million to HK$199 million get 10bp.

Proceeds are to fund the purchase of Vicwood Plaza in Sheung Wan. Responses are due by April 25.

Ocean ParkÆs HK$4.16 billion 15 year financing is in the market via mandated lead arrangers Bank of China, DBS Bank and HSBC.

The loan comprises a HK$1.38 billion tranche æAÆ that will be guaranteed by the Hong Kong government and a HK$2.77 billion non-recourse tranche æBÆ. Tranche A carries a margin of 25bp over Hibor while tranche æBÆ pays 70bp for the first five years, 75bp for years 6 to 10 and 80bp thereafter.

Banks have been invited to participate on four levels. Lead arrangers committing HK$500 million or above earn a front-end fee of 35bp for tranche æAÆ and 52bp for tranche æBÆ, arrangers lending HK$300 million to HK$499 million gain 25bp and 36bp, senior managers contributing HK$150 million to HK$299 million get 17.5bp and 26bp while managers providing HK$75 million to HK$149 million receive 10bp and 15bp. This equates to blended all-ins of 62.6bp for lead arrangers, 61.3bp for arrangers, 60.4bp for senior managers and 59.6bp for managers.

Proceeds are to fund the redevelopment of the theme park with a further HK$1.38 billion to be injected by the Hong Kong government, bringing the total financing package to HK$5.55 billion. A presentation will be held next Monday with responses due by May 3.


Essar SteelÆs $120 million five year credit should complete syndication next week. Barclays Capital and State Bank of India are leading the deal.

The latest banks to join include Indian Overseas Bank (Hong Kong) with a commitment of $10 million and Bank Negara Indonesia (Singapore), Indian Bank (Singapore) and Indian Bank (Colombo) with tickets of $5 million each. Arab Investment Bank, Export Development Canada and KfW joined earlier.

HDFC Bank is close to mandating a bank group to lead arrange a $100 million yen-equivalent 364 day credit. Proceeds are to refinance a $100 million facility signed in May last year and led by Calyon and Citigroup. The deal offered an all-in of 29bp over Libor.

Allocations for IDBI BankÆs Ñ11.78 billion financing have been finalised. The deal was funded in March and the banks will be substituted in mid-May.

Mandated lead arrangers DBS Bank and Natexis Banques Populaires lent Ñ1.81 billion apiece and DZ Bank and RZB-Austria held Ñ1.15 billion each. Lead arrangers are AKA Ausfuhrkredit committing Ñ1.3 billion and Bank Austria Creditanstalt and United Overseas Bank taking Ñ1.15 billion apiece.

Joining as co-arrangers are Export-Import Bank of the Republic of China and UniCredito Italiano contributing Ñ600 million each. Lead managers are Banca Nazionale del Lavoro pledging Ñ450 million and Banca Popolare di Verona e Novara and Sampo Bank with tickets of Ñ300 million apiece.

Videocon IndustriesÆ $50 million 3-1/2 year loan was signed on April 18 with a syndicate of 11 banks. Mandated lead arrangers Chinatrust Commercial Bank held $6 million and Natexis Banques Populaires, RZB-Austria and Shanghai Commercial & Savings Bank took $5 million each.

Woori Bank (Singapore) joined as an arranger with a commitment of $8 million while co-arrangers include Krung Thai Bank lending $5 million and Bank Sinopac providing $4 million. Joining as lead managers with tickets of $3 million apiece are BBVA, International Commercial Bank of China (Labuan), Land Bank of Taiwan and Raiffeisenlandesbank Niederoesterreich.

Videsh Sanchar NigamÆs $220 million five year facility should reach financial close next week as the final banks gain approval to join. Calyon, Standard Chartered Bank, Export Development Canada and Bank of Nova Scotia are the mandated lead arrangers.

Six banks have so far joined in general syndication with up to two more investors expected to join shortly. Lead arrangers earn an all-in of 57bp over Libor.


IndocementÆs $160 million equivalent multi-tranche loan was completed earlier this month. Standard Chartered Bank led the financing.

ABN AMRO, Bank Central Asia and Calyon Deutschland joined as lead arrangers. The facility comprises a IDR350 billion tranche, a $60 million portion and a Ñ7.07 billion loan.

Roadshows for Pamapersada NusantaraÆs $160 million dual tranche financing were held in Singapore last week. Citigroup, DBS Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp are leading the deal.

The facility comprises an $80 million four year amortising term loan and an $80 million three year revolving credit that can be extended by two years at the discretion of the lenders. The interest margin is 190bp over Libor.

Banks have been invited to participate on three tiers. Arrangers contributing $15 million or more receive 27.5bp flat, co-arrangers lending $10 million to $14 million gain 22.5bp and lead managers providing $5 million to $9 million get 15bp. Responses are due at the end of the month.

Bumiputra-Commerce BankÆs $300 million five year term loan has been launched into general syndication via mandated lead arrangers ABN AMRO, Bank of Tokyo-Mitsubishi UFJ, BayernLB, Citigroup and Standard Chartered Bank.

The facility carries a margin of 19bp over Libor and fees to the market are on two levels. Arrangers lending $20 million receive a management fee of 10bp and co-arrangers committing $10 million gain 5bp.

Proceeds are for working capital requirements and responses are due in early May.


Olam InternationalÆs $300 million five year term loan should complete syndication by the end of the month. DBS, HSBC, Rabobank and Standard Chartered Bank are leading the deal.

A handful of commitments have so far been received with more in the process of gaining approval to join. The all-in yield to lead arrangers is 155bp over Libor.

The S$1.56 billion five year financing for the development of the Orchard Turn site is set to launch into general syndication shortly. Bank of Tokyo-Mitsubishi UFJ, DBS Bank and Mizuho Corporate Bank joined mandated lead arrangers Calyon, Citigroup, Standard Chartered Bank, Sumitomo Mitsui Banking Corp and United Overseas Bank in sub-underwriting.

The facility is split into a $960 million term loan and a $600 million revolving credit. The borrower is a joint venture between CapitaLand and Sun Hung Kai Properties.

Sembcorp Cogen has inked a S$303 million eight year club loan with a group of four banks. Mizuho Corporate Bank provided S$90 million, BNP Paribas lent S$78 million, United Overseas Bank took S$75 million and HSBC contributed S$60 million.

Proceeds are to refinance a $294 million facility signed in April 2001 for the construction of a 815MW gas-fired co-generation plant on Jurong Island.


Mandated arrangers Hua Nan Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank launched a NT$4 billion 12 year aircraft financing for Chailease Finance into general syndication on Tuesday.

The margin is 45bp over the CP rate and fees to the market are on two tiers. Lead managers contributing NT$500 million or above earn 5bp and managers lending NT$200 million to NT$499 million gain 3bp.

Proceeds are to finance the purchase of an Airbus A330 commercial aircraft that will be leased by China Airlines.

KNH EnterpriseÆs NT$1.3 billion 5-1/2 year credit was signed on April 20 with a syndicate of 10 banks. Mandated arrangers Chiao Tung Bank, First Commercial Bank and Industrial Bank of Taiwan each lent NT$200 million.

Participating banks with commitments of NT$50 million apiece are Chang Hwa Commercial Bank, Chinatrust Commercial Bank, Far Eastern International Bank, Taipei Business Bank, Taipei Fubon Commercial Bank, Taiwan Business Bank and Taiwan Cooperative Bank.

A NT$7 billion five year facility for Siliconware Precision was launched into syndication on April 13. Bank of Taiwan, Calyon, Chinatrust Commercial Bank, International Commercial Bank of China, Mizuho Corporate Bank and Taipei Fubon Commercial Bank are leading the deal.

The loan is split equally into a term loan and a guarantee facility. The term loan tranche offers a margin of 35bp over the CP rate while the guarantee facility pays 35bp.

Banks have been invited to join on two levels. Co-arrangers lending NT$500 million or above receive 4bp flat and managers contributing NT$300 million to NT$499 million gain 2bp. There is also a commitment fee of 10bp.

Proceeds are to repay existing debt and for capital expenditure requirements.

Ton Yi IndustrialÆs five year dual tranche loan has been increased to NT$2.6 billion from NT$2 billion after a strong response in syndication. Bank of Taiwan and Ta Chong Bank are the mandated arrangers.

Participating banks are Bangkok Bank, Bank of Kaohsiung, Bank of Overseas Chinese, Cathay United Bank, Chiao Tung Bank, China United Trust & Investment, Fuhwa Bank, Shanghai Commercial & Savings Bank, Taipei Fubon Commercial Bank, Taiwan Cooperative Bank, China Bills Finance Corp, Chung Hsing Bills Finance, International Bills Finance Corp, Taching Bills Finance and Union Bills Finance.

Signing is on April 24.

Tsann Kuen EnterpriseÆs NT$3.3 billion five year fundraising was signed on April 17. A group of seven banks provided the funds on a club basis.

China Development Industrial Bank, Hsinchu International Bank, Industrial Bank of Taiwan, Ta Chong Commercial Bank, Taipei Fubon Commercial Bank and Taiwan Cooperative Bank each lent NT$500 million while Hwa Tai Bank contributed NT$300 million.

Vertex Precision Electronics signed its NT$1.8 billion dual tranche facility on Tuesday. Coordinating arrangers Taishin International Bank and Taipei Fubon Commercial Bank held NT$225 million each.

Joining as arrangers are Fuhwa Bank and China Development Industrial Bank with tickets of NT$225 million apiece. Hsinchu International Bank came on board as a senior lead manager with a commitment of NT$180 million. Lead managers include Asia Trust & Investment Corp, Bank of Overseas Chinese, Bank of Panhsin, Bowa Bank, Chinese Bank, Hsinchu International Bank, Hua Nan Commercial Bank, Hwatai Bank and Shin Kong Commercial Bank contributing NT$90 million each.
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