Loans week July 17-23

A roundup of the latest syndicated loan market news.

The second largest Asia Pacific (ex-Japan) textile facility signed in 2015

E-Land Fashion China Holdings has completed a $300 million transaction through joint bookrunners and mandated lead arrangers Emirates NBD, HSBC, Natixis and Standard Chartered Bank. The facility is split into a $225 million three-year term loan and a $75 million one-year revolving credit.

Syndication saw CTBC Bank and Commercial Bank of Qatar join as mandated lead arrangers while 17 other banks come in as participants. Proceeds are to refinance an existing facility signed in July 2013.

This is the second largest facility in the textile sector in Asia Pacific (ex Japan) so far this year, behind a $475 million loan borrowed in June 2015 by Next Creations Trading Singapore Ltd.

Refinancing * loans has accounted for 34% of Asia Pacific (ex Japan) loan volume so far in 2015 with $83.1 billion, down 32% year-on-year.

Total China syndicated loan volume has reached $61.1 billion in 2015 year-to-date, up 20% year-on-year.

*Includes loans where the proceeds are used to refinance or repay debt

The second largest Asia Pacific ex-Japan telecommunications facility signed in 2015 year-to-date

Huawei Tech Investment and Huawei Technologies Cooperatief UA have secured a $1.5 billion five-year term loan though joint bookrunners and mandated lead arrangers ANZ, BBVA, Bank of China, Bank of Tokyo-Mitsubishi UFJ, Citi, DBS, HSBC, ING, ICBC, Mizuho Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.

The financing is priced at 115bp over Libor.  Syndication saw Bank of Communications, Barclays Bank, China Construction Bank, Commerzbank, Credit Agricole, First Gulf Bank PJSC, JPMorgan and UniCredit Bank come in as mandated lead arrangers while Banco de Sabadell, BayernLB, Credit Industriel et Commercial SA and Westpac joined as arrangers. Proceeds are for general corporate and working capital purposes.

This is the second largest deal in telecommunications sector in Asia Pacific (ex-Japan) so far this year, after China Network Systems’ $1.5 billion facility.

Telecommunications sector loans account for 5% of total Asia Pacific (ex Japan) loan volume with $10.9 billion via 21 deals in 2015 so far, down 24% on the $14.4 billion via 22 deals borrowed in the same period last year.

India’s third largest construction loan signed in 2015 year-to-date

Reliance Utilities and Power has signed a $300 million five-year term loan through sole bookrunner and mandated lead arranger RBS. The facility is priced at 160bp over LIBOR. Syndication saw Axis Bank, BNP Paribas, First Gulf Bank, Societe Generale and State Bank of India join in as mandated lead arrangers while Chang Hwa Commercial Bank, Hua Nan Commercial Bank, Mega International Commercial Bank and Taiwan Cooperative Bank came in as lead arrangers. Proceeds are for capital expenditure related to projects.

This is India’s third largest syndicated loan in the construction sector so far this year.

India's construction sector loan volume has dropped to $3.3 billion so far this year from the $9.2 billion reached in the same 2014 period. Total India syndicated loan has reached $23.1 billion in 2015 year-to-date, down 60% year-on-year.

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