Loans week July 3-9

A roundup of the latest syndicated loan market news.

The third largest construction sector syndicated loan in China 2015 year-to-date

Yunnan Urban & Rural Construction Investment has sealed a Rmb6.7 billion debt package through mandated lead arrangers Bank of China, China Development Bank Corp, China Guangfa Bank, Fudian Bank and Postal Savings Bank of China on a club basis. Proceeds are to support public housing construction.

This is the third largest construction sector loan completed in China in 2015 year-to-date and brings the construction-sector loan volume in China to $5.5bn so far this year, down 38% year-on-year.

The fourth largest club facility in Malaysia in 2015 year-to-date

Penang Port Sdn Bhd has inked a M$1.2 billion 10-year term loan through mandated lead arrangers Affin Hwang Investment Bank, AmInvestment Bank, CIMB Investment Bank and Maybank on a club basis. Proceeds are to repay existing indebtedness.

The deal is the fourth largest club facility signed in Malaysia year-to-date, after Sime Darby Plantation’s $830 million financing, Mono Group Holding’s $400 million term loan and Klebang Capital’s $400 million term loan.

Malaysia club deal volume dropped 73% to $2.7 billion so far this year, from $9.8 billion in 2014 year-to-date.

The third largest club deal signed in Singapore year-to-date

Armada Kraken has completed a $755 million eight-year transaction through joint mandated lead arrangers Bank of Nova Scotia, MEXIM, Maybank, National Bank of Abu Dhabi, OCBC, RHB Investment Bank and Sumitomo Mitsui Banking Corp on a club basis.

The loan package was spilt of a $722 million term loan and a $33 million L/C facility. Proceeds are to take out a bridge loan the company raised in March 2014 for the acquisition and installation of the Armada Kraken floating production storage and offloading vessel (FPSO).

The deal is the third largest club deal signed in Singapore so far this year, behind Asia Mobile Holdings’ $898 million deal and North Gem Development’s $826 million deal and brings total club loan volume in Asia Pacific (ex Japan) to $69.5 billion in 2015 year-to-date, down 50% from the same period last year ($140.2 billion) and the lowest year-to-date level since 2010 ($47.3 billion).

 

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