Shenzhen Investments, CNPC meet with success

Shenzhen Investments and CNPC (HK) have successfully closed their loan deals following over-subscription in general syndication.

Shenzhen Investments seems to be getting into the habit of closing over-subscribed deals. Its $150 million five-year loan was over-subscribed to over 15% in general syndication following which the borrower decided to upsize the loan to $175 million.

This deal follows in the footsteps of the company's last deal in September 2000. That deal tapped by the company in its previous incarnation as Shum Yip Investments was also over-subscribed in general syndication and upsized to $80 million from an original size of $60 million.

The present facility will refinance the convertible bonds issued by the company in August 1997. According to figures provided by Dealogic, Shum Yip Investments raised $230 million from the convertible bond issue with a coupon of 1.2% and Treasury spread of 130bp. The bonds mature on August 8, 2002 with approximately $113 million still outstanding. Shenzhen Investments would fully repay the convertible bonds from the proceeds of the loan and use the remainder for general working capital purposes.

A total of 11 banks, including the six mandated arrangers participated in the deal. The final allocations are as follows:

Shenzhen Investments $175 million five-year loan facility

Final allotted commitments (US$)

Mandated Coordinating Arrangers

 

Bank of Communications, Hong Kong Branch

25,000,000

Commerzbank Aktiengessellscaft, Hong Kong Branch

25,000,000

HSBC

25,000,000

Hang Seng Bank

25,000,000

Industrial and Commercial Bank of China (Asia)

25,000,000

Development Bank of Singapore

20,000,000

 

 

Lead Manager

 

Agricultural Bank of China, Hong Kong Branch

10,000,000

 

 

Managers

 

Chiyu Banking Corporation (A subsidiary of Bank of China (Hong Kong) Limited)

5,000,000

Tai Fung Bank

5,000,000

Wing Hang Bank

5,000,000

Wing Lung Bank

5,000,000

 

 

Total

175,000,000

Meanwhile, CNPC (HK) made a successful loan market debut yesterday when its dual-tranche $100 million facility was closed following over-subscription in general syndication. SMBC was the sole mandated arranger for the deal, which was over-subscribed to over 20%. CNPC (HK), however, did not upsize the deal as its requirement is only for $100 million. The signing ceremony was held yesterday.

The three-year facility comprises of a term loan for $40 million and a revolving tranche of $60 million. The facility carries a spread of 40bp over Libor. The borrower is Great Fortunate Assets Corp, the BVI-incorporated, wholly-owned subsidiary of CNPC (HK). The final allocations for the deal, which saw participation from 10 banks, are as follows:

CNPC (HK) $100 million term loan/revolving credit facility

Final allotted commitments (US$)

Mandated Arranger

 

Sumitomo Mitsui Banking Corporation

 

 

 

Co-ordinating Arrangers

 

Agricultural Bank of China, Hong Kong Branch

14,500,000

Bank of China (Hong Kong) Limited

14,500,000

China Construction Bank, Hong Kong Branch

14,500,000

Sumitomo Mitsui Banking Corporation

14,500,000

 

 

Lead Managers

 

UFJ Bank Limited, Hong Kong Branch

9,500,000

Wing Lung Bank, Limited

9,500,000

The Yamaguchi Bank, Ltd. Dalian Branch

9,500,000

 

 

Managers

 

Bank of Communications, Hong Kong Branch

4,500,000

Tai Fung Bank Limited

4,500,000

UBAF (Hong Kong) Limited

4,500,000

 

 

Total

100,000,000

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