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lans to launch a new class of Chinese shares in Haier may well decide to press ahead with a European
Germany are gaining traction, but it would be a listing, especially if it has its eye on future acquisitions in
mistake to assume that Frankfurt will one day rival THEûREGIONû"UTûIFûTHEûMAINûBENElTûOFûAû$
SHAREûLISTINGûISû
Hong Kong or the US as a gateway for Chinese equities. marketing, rather than fundraising, initial deals are likely
Qingdao Haier, which claims to be the world’s biggest to be far smaller than the exchange would like.
white-goods manufacturer, is considering a listing of
D-shares on the China Europe International Exchange in
Frankfurt. Jumping for junk
CEINEX is a joint venture between German and Chinese
I
exchanges, and its D-share concept has already won the n a rollercoaster week for global markets, the latest
blessing of regulators in both countries. Convincing issuers batch of Asian high-yield bonds deserves close attention.
and investors, however, will be another matter. 4UMBLINGûSTOCKûMARKETSûANDûAûmIGHTûTOûTHEûSAFETYûOFû
At a high level, access to a rich European investor US Treasuries are usually disastrous for sub-investment
base looks attractive for a Chinese company with global GRADEûlNANCINGSû"UTûMOSTûOFû!SIASûNEWûISSUESûOVERûTHEûPASTû
ambitions, such as Haier. But it’s hard to imagine the week have come from low-rated borrowers, with only one
nascent D-share market competing with more established high-grade issuer clearing the market.
Does this mean Asian investors are still looking to add
risk, regardless of the turmoil in global markets? Or are
A better option would be a these companies simply desperate to raise cash no matter
what price?
trading link along the lines Both arguments make sense. Investors see junk bonds as
of Hong Kong’s tie-ups with offering a bigger cushion against rising US Treasury yields,
and they certainly got some juicy coupons, with Sunshine
Shanghai and Shenzhen. ûPAYINGûûANDû)NDONESIANûMINERû'OLDENû%NERGYûANDû
2ESOURCESûYIELDINGû
Most issuers, meanwhile, preferred to wait for calmer
As and Hs on valuation or liquidity. times before launching their deals.
CEINEX was conceived as an offshore renminbi Many Chinese issuers have offshore debt quotas due to
marketplace that would allow European investors to gain expire next month, suggesting a sense of urgency behind
exposure to the Chinese currency through their existing MOSTûOFûTHEûWEEKSûlNANCINGSû3IMILARLYû3OUTHû+OREASû
trading accounts, and its most popular products are ETFs Daegu Bank, the only high-grade issuer to sell US dollar
tracking Chinese equity markets. Trading data isn’t easy bonds during the week, paid a premium to access the
TOûlNDûBUTûBYû!PRILûûFOURûMONTHSûAFTERûITSûLAUNCHû market ahead of an April maturity.
AVERAGEûDAILYûTRADINGûVOLUMEûWASûAROUNDûüM Last week’s volatility presented a better entry point
Some PRC issuers are coming on board: China for brave investors – especially those who were already
Development Bank listed Green bonds on the exchange prepared to anchor deals before the sell-off. But if the
in November. But a big listing from a blue-chip stock like US market stays shaky, hopes for a repeat of the stellar
Haier would be a monumental leap. PERFORMANCEûOFû!SIANûHIGH
YIELDûINûûMAYûBEûDASHED
European investors do have other ways of taking a view Still, the latest batch of high-yield offerings underlines
on Chinese equities, and Haier’s Shanghai shares are just how far the Asian market has come in the last couple
already available to international investors through the of years. Not long ago, high-yield issuers would be the last
Hong Kong-Shanghai Connect trading link. TOûJOINûTHEûPARTYûINûAûBULLûMARKETûANDûTHEûlRSTûTOûDISAPPEARû
A better option would be a trading link along the lines when things turned bearish. The pool of wealth now
of Hong Kong’s tie-ups with Shanghai and Shenzhen. A available in China and beyond means that is simply no
Frankfurt Connect would meet the same objectives, but longer the case.
BONDS
04 Volatility sidelines Asian issuers COUNTRY REPORT
Global volatility meant only a handful of Asian issuers
dared to brave the offshore bond market last week, and 17 AUSTRALIA 30 NEW ZEALAND
those that did had to pay up. Westpac has released price Fletcher Building is reviewing
guidance at 90-day BBSW plus key projects of its building and
320bp–340bp for Westpac interiors division as it expects to
BONDS
Capital 5 Notes, aiming to raise post losses on breaches of one
04 Haier mulls landmark listing approximately A$750m or more of its loan covenants
Chinese home-appliance giant Qingdao Haier is
18 CAMBODIA 30 PHILIPPINES
considering a listing in Frankfurt that would create a
Acleda Bank’s five-year Food and beverage company
new class of stock for PRC companies. offshore loan, doubled in size Del Monte Pacific plans to list
to US$100m, was allocated unit Del Monte Philippines on
BONDS to 11 banks with Shin Kong the Philippine Stock Exchange
06 Panda rulebook on the horizon Commercial as sole MLAB with an IPO of up to Ps16.7bn
China has taken a big step towards the publication of 19 CHINA 30 SINGAPORE
long-awaited guidance on Panda bond offerings, more Greenland Holding, rated Ba1/ GuocoLand raised S$50m from
than two years after reopening the market. BB/BB, drew final orders of a tap of its 4.6% perpetual non-
US$1.9bn for a US$700m dual- call five bonds, priced at par
tranche offering of US dollar with a spread of 260.9bp over
senior unsecured notes Singapore dollar SOR
NEWS
25 HONG KONG 31 SOUTH KOREA
07 GEAR pays year’s highest yield ZH International Holdings Daegu Bank, rated A2/A–
GEAR overcame choppy markets to make its offshore plans to raise US$200m from (Moody’s/S&P), drew final
debut last Thursday, but the company had to pay the the sale of US dollar short- orders of US$2.3bn from 138
highest year-to-date yield in the Asian G3 sector. term notes to meet general accounts for US$300m of US
corporate needs dollar senior unsecured bonds
07 Volatile Sing rates stall issuance Sales of Singapore dollar bonds
ground to a halt this month on large swings in local benchmark rates. 25 INDIA 32 TAIWAN
08 Vietnam steps up privatisations Vietnam’s equity capital market is Golden Energy on Thursday The Taiwan Formosa bond
overcame choppy markets on its market continued to provide
enjoying flurry of activity since the beginning of the year.
offshore debut, but had to pay ample fundraising opportunities
08 Ezion nears rehabilitation Ezion Holdings has secured the support of its
the highest yield in the Asian G3 for Asian issuers in the first five
secured lenders for a restructuring that will slash its debt burden. sector year to date weeks of the year
26 INDONESIA 33 THAILAND
PEOPLE & MARKETS Panin Bank intends to issue Frasers Property Holdings
Rp3.9trn five-year rupiah bonds Thailand will sell bonds of up
12 Hong Kong loosens IPO pricing rules at 7.6% with the help of five to Bt5bn at end-February on its
Bankers in Hong Kong have welcomed the local lead arrangers, according to a market return after a Bt2.5bn
bourse’s plan to allow issuers to sell IPO shares below source close to the plans maiden issue late last year
indicative price ranges. 28 JAPAN 33 VIETNAM
12 Singapore, Malaysia to renew trading link The two countries plan to Toei Reefer Line’s management A US$100m term loan
buyout is back in the limelight for Vietnam Joint Stock
establish a new trading link between their stock markets.
after a revised bid from its Commercial Bank for Industry
15 Who’s moving where Deutsche Bank has appointed Duncan Mann and
president, who failed in an and Trade has seen six lenders
Apurva Shah as co-heads of financial sponsors for Asia Pacific. attempt last month join in general syndication
16 In brief Singapore’s central bank is studying the risks cryptocurrencies
pose, yet so far there is no strong case to ban trading of the digital coins. 29 MALAYSIA
Comment Jonathan Rogers is away State-owned DanaInfra
Nasional sold M$4bn of Islamic
bonds in a multi-tranche
ASIA DATA transaction last week through
five joint lead managers
34 This week’s figures
BY CAROL CHAN, DANIEL STANTON deal helped draw demand of secondary trading on Thursday. deals that came to market the
more than US$2.3bn, but final Final pricing was also around same day. Daegu Bank has
Global volatility meant only a pricing of Treasuries plus 135bp 20bp inside initial guidance, a US$300m bond maturing
handful of Asian issuers dared was estimated at 10bp–15bp fairly modest for an Asian on April 29, giving it little
brave the offshore bond market wide of fair value, and the dollar transaction, but in line flexibility on timing.
last week, and those who did bonds tightened 17bp in with US investment-grade On Thursday, Indonesia’s
had to pay up.
Ten-year US Treasury yields
jumped 5bp on February 2 on
better-than-expected non-farm
payrolls and wage growth, then
tighened 13bp last Monday
before widening 10bp on
Tuesday. The iTraxx Asia ex-
Japan investment-grade CDS
index widened 4bp on Monday
and by the same amount on
Tuesday, as risk appetite fell.
The REPUBLIC OF INDONESIA was
forced to delay a planned US
dollar offering, and the only
Asian investment-grade issuer
to complete a trade last week
was South Korea’s DAEGU BANK
with a US$300m 5.5-year issue.
“We are still having calls on
other deals, and other issuers
are standing down,” said a DCM
banker.
The relatively short tenor and
capped size of Daegu Bank’s
Green RMBS premiere 09 First reset on PRC perps 10 Indian insurers raise sub debt 11
GOLDEN ENERGY AND RESOURCES shaky market. going, according to market from the National Development
managed to print a US$150m On the other hand, nothing sources. and Reform Commission that
five-year non-call three issue, was heard from Guorui will expire by the end of March,
but had to pay 9.375%, the Properties, Jiangyin Chengxing CLOCK TICKING that will not leave much time for
highest yield in the Asian G3 Industrial Group, Guangzhou Chinese issuers are unlikely them to complete their planned
market so far this year. City Construction Investment to launch deals this week, bond sales.
The volatility forced some Group, Shandong Hi-Speed considering that settlement Indeed, many Chinese issuers
Chinese issuers to push back Group, Inner Mongolia BaoTou usually takes four or five wanted to complete their
their offshore issuance plans Steel Union, HC International, working days. Lunar New Year deals before Lunar New Year,
in the hope that more benign Hubei Science & Technology falls on February 16 and China according to bankers.
conditions will prevail after the Investment Group and Taizhou has a week-long holiday from “Nobody know whether the
Lunar New Year holiday. Huaxin Pharmaceutical February 15. market will be better or even
“We’ve kept monitoring the Investment, all of whom Bankers said deal flow from worse after the holidays,” one
markets but didn’t see a very originally aimed to issue bonds China was likely to resume in of the bankers said. “They want
good window to launch the late last month or earlier this the week of February 26. to use up their offshore debt
deals,” said a syndicate banker month, but now will have to However, as many issuers have quotas before they expire, as
from a Chinese bank. “Investors wait until late February to get offshore debt issuance quotas there is no assurance whether
are very cautious, especially they can secure an extension
as some of our deals are those from NDRC or whether they
private, unlisted high-yield RISK OFF will get into trouble when
names, which find it hard to CREDIT SPREADS IN ASIA HAVE REVERSED COURSE THIS MONTH applying for new quotas.”
draw investors’ interest in a However, another banker
90
risk-off environment.” dismissed some of the worries.
Still, a few Chinese issuers 85 He said there are examples of
printed US dollar bonds last 80 other issuers getting NDRC
week, including property extensions.
developers SUNSHINE 100 CHINA 75 “I think NDRC will be
HOLDINGS and FANTASIA HOLDINGS 70 reasonable in this regard as
GROUP, and Chinese local it also knows the market
government financing vehicles 65 situation,” the banker said.
FUJIAN ZHANGLONG GROUP and 60 He said he had seen a list
SHANGRAO INVESTMENT HOLDING of more than 10 companies
55
GROUP. Most of these deals were Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 to which NDRC had granted
said to be heavily anchored, iTraxx Asia ex-Japan IG index (bp)
offshore debt issuance quota
giving them confidence that extensions from end-December
they could make it through a Source: Markit via Thomson Reuters Eikon last year to end-June this year.
the people. Frankfurt Stock Exchange, company’s strategy to raise in 2016 and claims to be the
The first three D-share disappeared, together with its international profile as a world’s biggest maker of large
listings are expected to raise his son, with US$60m from leading Chinese manufacturer, home appliances.
between €500m (US$614m) and the company’s bank account. especially as Germany is According to the company’s
€1bn for a total of up to €3bn, 2016 annual report, citing
Reuters reported. research from Euromonitor,
So far, Frankfurt has Haier controlled 10.3% of the
struggled to attract listings global market for large home
from major Chinese companies, appliances, ranking No 1 for
which generally prefer to float “The stock exchange would want the company to the eighth consecutive year.
in the domestic A-share market do a landmark transaction with a sizable offering, Shanghai Stock Exchange
for higher valuations, or in say around US$1bn, while the company may not said last year that CEINEX
Hong Kong or the US, where want to sell a big chunk of shares at a discount.” would initially welcome
investors are more familiar D-share offerings from China’s
with such issuers. blue-chip listed companies,
A series of scandals involving especially manufacturers
small-cap Chinese companies looking to expand overseas.
listed in Frankfurt has also Issuing D-shares could help
dented investor interest in PRC In the same year, the CEO of renowned for its expertise Chinese companies increase
entities. Frankfurt-listed Youbisheng in white goods, according to the awareness of their brands
In 2014, the chairman of Green Paper also disappeared. another source. in Europe, and promote their
Ultrasonic, a small Chinese Haier’s move to sell Haier bought General business in the European
shoemaker listed on the shares overseas fits with the Electric’s white-goods business market, according to SSE.
BY INA ZHOU documentation required are not recognised by China’s bankers said.
and the registration process, Ministry of Finance, such as Sovereigns, supranationals
China has taken a big step and are roughly in line with US GAAP, will need to provide and agencies are not subject
towards the publication of long- existing practice in the Panda quantitative reconciliation or to the rules on accounting
awaited guidance on Panda bond market. qualitative restatement of their treatment for public offerings,
bond offerings, more than NAFMII has not directly financial reports for any public sources said.
two years after reopening the addressed sensitive issues like offering of Panda bonds. In the past three years, some
market in September 2015. accounting systems and the use These issuers will also have foreign names have tested
The main regulator for of proceeds, but asked issuers the option of adopting the the Panda bond market, but
corporate bonds in the to meet certain requirements private placement format, offshore-incorporated Chinese
interbank market said last set by Chinese regulators, which does not require issuers have been the main
week a committee had granted including the PBoC, these reconciliation or restatement of issuers. Bankers do not expect
initial approval to a new rule bankers said. financial reports, sources said. that dynamic to change soon.
on non-financial Panda bonds, The main sticking point Excluding sovereigns, only
raising hopes that the rulebook for regulators has been the MORE DIVERSE ISSUERS two issuers have launched
is finally on the horizon. complexity of reconciling Bankers said the new rules public offerings of Panda bonds
The National Association of foreign accounting and auditing would potentially open Panda without Hong Kong accounting
Financial Market Institutional standards with their Chinese bonds to a more diverse range standards. To win approval,
Investors, which operates equivalents. of issuers, but did not foresee National Bank of Canada
under the People’s Bank of Those issues are expected to a jump in supply, given rising and Maybank had to provide
China, said in a statement on be addressed in new guidelines onshore yields, additional costs qualitative explanations of
its website that its Bond Market from the PBoC, which could for some issuers and some accounting differences.
Professional Committee had come out before the release of disclosure requirements with In the private placement
passed guidance on overseas NAFMII’s rules, bankers said. which non-Chinese issuers segment, Daimler, French
non-financial corporate debt “This time, Panda bond rules, might not be comfortable – water-management company
instruments, without giving from both NAFMII and PBoC, for instance, updating their Veolia Environnement, Russian
details. look set for publication,” said financial statements quarterly aluminium producer Rusal, and
Market participants said that a Shanghai-based DCM banker. in China. Japanese lenders Bank of Tokyo-
meant rules on Panda bonds He expected both sets of rules As the MoF only recognises Mitsubishi UFJ and Mizuho
were imminent, as they now to be announced after the European and Hong Kong Bank are the only issuers
only require a second approval Lunar New Year, with the PBoC accounting standards, issuers not following Hong Kong
from another committee likely to publish first. using other norms will face accounting standards.
at NAFMII and registration According to sources, the additional costs to adjust According to United Credit
with the PBoC before being PBoC’s guidance is expected their financial statements Ratings, issues of Panda bonds
published. NAFMII oversees to stipulate that financial for a public offering. Private in the interbank and exchange-
corporate and sovereign Panda and corporate issuers using placements usually required trade markets fell 40% in 2017
bonds in China’s vast interbank accounting standards that a higher liquidity premium, to Rmb71.7bn (US$11.3bn)
market.
Bankers have been waiting
for explicit guidance for the
Panda bond market for the
past two years. That did not
stop deals from coming to
market, but meant most issues
had to be reviewed on a case-
by-case basis, with little clarity
over the odds of regulatory
approval.
“We are very much looking
forward to the new rules after
going through ambiguity in
the past. We do hope it will
give us clear guidance”, said a
Beijing-based DCM banker with
a Chinese bank.
Bankers who have seen
NAFMII’s new rules said they
deal mainly with technical
issues such as the types of
BY S ANURADHA corporate assets as part of an Investor interest in Vietnam has also raised doubts over
initiative to boost privatisation. has grown steadily, especially whether the recently privatised
Vietnam’s equity capital market The new Committee for after VINCOM RETAIL’s record D16trn state-owned companies will be
is enjoying a flurry of activity State Capital Management at IPO last year, which attracted able to sell stakes to strategic
since the beginning of the year Enterprises would be more investors beyond the usual investors, as originally planned.
as the government steps up the comprehensive than the State line-up of frontier-market funds. “There is no way these
pace of privatisations to cut its Capital Investment Corporation, A group of employees raised companies can function properly
fiscal deficit. Vietnam’s main state investment D4.68trn through the sale of without the technological and
Five state-owned companies, arm, officials said. This is 94.5m Vincom Retail shares last financial inputs of the strategic
VIETNAM RUBBER, PETROVIETNAM designed to simplify the sale Monday. partners,” the banker said.
POWER, PETROVIETNAM OIL, BINH SO of equity stakes in state-owned Despite the positive backdrop, Stakes of 28.88% in PV Power,
REFINERY and POWER GENERATION CORP companies, which have suffered demand has been mixed due 44.72% in PV Oil and 49% in
3 (Genco 3) raised a combined delays and complications to concerns over pricing and a Binh So are due to be sold to
D18.1trn (U$797m) from IPOs so because many fall under the lack of due diligence. Bankers strategic investors. All three
far this year. management of multiple say only share sales in privately are subsidiaries of state-owned
This year’s IPOs are much ministries. owned companies are likely to PetroVietnam.
larger than the sub-US$100m A vibrant stock market attract broad-based demand this The recent IPOs have had
floats of the past. The increased is providing a favourable year. mixed results as a result of these
sizes reflect the government’s environment for privatisations. Many international investors concerns. The Vietnam Rubber
efforts to slash its fiscal deficit, The benchmark Vietnam Index remain uncomfortable with deal, which closed on February
which has exceeded 6% of GDP rose close to 50% in 2017 and is state-owned companies. 2, raised only D1.311trn, less
between 2012 and 2016 and is up 5.7% year to date. “Due diligence remains a than a quarter of the target due
due to fall to under 3.5% of GDP Regulators have also improved big issue. Investors are not to the overall lack of interest in
by 2020. listing procedures to woo sure about the accuracy of the the sector. Similarly, investors
The government said investors. The shares sold in the numbers provided in the offer bid for just 2.8% of Genco 3’s
last Monday it had set up a recent IPOs will be listed within documents,” said a Singapore- IPO on valuation concerns and
committee to oversee around 90 days as opposed to years in based ECM banker. what they said was inadequate
D5,000trn of state-owned the past. Recent global market volatility marketing. The auction
BY PRAKASH CHAKRAVARTI profiles are among the most a good opportunity for proxy In the past five months, they
important factors drawing exposure to their parents at a have raised US$5.45bn, of which
Aircraft-leasing company SMBC lenders to leasing companies, decent premium,” said a senior US$3.03bn has been offshore.
AVIATION CAPITALhas launched a several of which are units of large loans banker in Singapore. Most of these borrowers have
debut US$600m syndicated loan, financial institutions. met with a strong receptions
adding to the list of financings Sumitomo Mitsui Financial MADE IN CHINA from lenders even when
from the sector in recent months. Group owns 66% of SMBC The majority of the leasing returning for more than one
The leasing sector holds a lot Aviation Capital, which is rated company borrowers are from borrowing. FAR EAST HORIZON, a
of appeal for lenders in Asia, A–/BBB+ (Fitch/S&P). AerCap has China, where domestic liquidity unit of state-owned chemicals
thanks to the growth stories and ratings of BBB- from both Fitch has been shrinking and the cost conglomerate Sinochem Group,
parentage of the borrowers, and and S&P. of borrowing rising after recent is in the market for a US$800m-
the opportunities they offer in a Among borrowers with loans deleveraging measures in the equivalent three-year bullet loan,
deal-starved environment. in syndication are ABC FINANCIAL financial sector. only three months after raising a
Since September, more than 20 LEASING and PING AN INTERNATIONAL Although yields on three- similar-sized facility.
leasing companies have tapped FINANCIAL LEASING. The former is year Chinese Treasury bonds The new loan pays a top-level
the Asian market for loans a unit of Agricultural Bank of had tightened to 3.61% last all-in pricing of 155bp, based on
of almost US$6bn, including China, one of the Big Four banks Wednesday from 3.78% at an interest margin of 130bp over
borrowings of US$2.83bn that are on the mainland, while PAIFL is a end-December, they were still Libor/Hibor, close to the 158.33bp
in syndication. unit of Ping An Insurance Group, significantly higher than the all-in via the same margin on
Among them is Amsterdam- the world’s largest insurer. 3.49% mark last July, according the previous loan completed in
headquartered AERCAP HOLDINGS, Lending to leasing companies to China Central Depository & November.
which is returning to the Asian means taking indirect exposure Clearing. That loan attracted 13 banks
loan market after nearly two to the parents, which do not have The domestic market for in general syndication and had
years for a US$600m four-year a history of borrowing in the Chinese leasing companies is not five mandated lead arrangers and
revolving credit facility. syndicated loan markets. entirely shut, but some of their bookrunners. Eight banks are
Parentage and strong credit “The leasing units present biggest loans have been offshore. MLABs on the new loan. Far East
call 7.5-year (September 22 2025) is day the note was tapped for A$75m at the
expected to open on February 13 and same margin.
AUSTRALIA close on March 6. The margin is due This was Westpac’s second local currency
to be set on February 12 following the T2 note, rated Baa1/BBB (Moody’s/S&P), in
bookbuild. recent weeks after January 17’s A$160m
DEBT CAPITAL MARKETS ANZ, CBA, JP Morgan, Morgans, NAB, UBS 5.0% 30-year bullet EMTN, aimed at Asian
and Westpac’s own syndicate team are joint life insurers.
› WESTPAC TARGETS SUB MARKET lead managers. The previous T2 note from an Aussie
The last Australian major bank to sell major in the domestic market was National
WESTPAC has released price guidance at 90- domestic AT1 notes was ANZ with last Australia Bank’s ASX-listed A$800m 11.5-
day BBSW plus 320bp–340bp for Westpac September’s A$931m ANZ Capital Notes 5. year non-call 6.5 in February 2017, priced at
Capital 5 Notes, an Additional Tier 1 retail The perpetual non-call 7.5-year (March 20 three-month BBSW plus 220bp.
note offer, aiming to raise approximately 2025) floating-rate note priced 380bp wide
A$750m (US$585m). of 90-day BBSW. › AUSNET MTN RAISES A$500M
The new notes, rated BB+ (S&P), include Also in the subordinated segment,
a reinvestment offer for eligible holders of Westpac privately placed a reverse-enquiry AUSNET SERVICES HOLDINGS,
rated A3/A–
the A$1.19bn Westpac CPA AT1 notes due driven self-led A$150m 10-year non-call (Moody’s/S&P), raised A$500m from last
to be called on March 31. Tier 2 note last Wednesday, priced at three Friday’s 10.5-year domestic MTN sale, the
The offer for the new perpetual non- month BBSW plus 140bp. The following second and largest corporate domestic bond
A greatly expanded investor pool is triggering A$100m-plus long-dated issues, including range for taps of its July 2027s between April
a run of large, long-dated issues in the SSA two A$500m 10.5-year Kangaroos, from the and October last year.
Kangaroo market, in stark contrast to recent ASIAN DEVELOPMENT BANK and last Tuesday’s In absolute yield terms, the ACGB/
years, when mid-curve trades were in the INTERNATIONAL BANK FOR RECONSTRUCTION AND Treasury spread had narrowed from around
ascendancy. DEVELOPMENT print. The previous IBRD 10.5- 30bp a year ago, but remained positive at
Supranationals and agencies have raised year sale in April 2026 raised A$150m. 10bp–20bp during January, whereas the five-
a combined A$5.9bn (US$4.6bn) from 44 year ACGB fell to flat to Treasuries, having
Kangaroo bonds from so far this year, with HIGH-QUALITY BOOK offered 40bp more juice in early 2017.
A$3.8bn coming via new 10-year and 10.5- The latest 10.5-year offering from the World “The US dollar market is compelling in the
year issues or taps, to take average deal Bank funding arm confirmed the broadening three-year to five-year segment, while the
maturities out to 9.5 years. real-money investor base. 10-year-plus Kangaroo segment is attractive
This represents quite a shift from early Central banks and official institutions, on a comparative cost of funding basis. We
2017, when just A$1.0bn of the A$4.4bn which traditionally focus on the five-year expect this to remain the case unless yields
year-ago SSA sales total was related to long- segment, bought 64%, with asset managers retreat and/or the cross-currency swap basis
dated Kangaroos, with only three of these and insurance companies taking 20%, narrows significantly,” White said.
trades raising A$100m or more, the largest while banks and corporates picked up the Overall, SSA Kangaroo supply is unlikely
being A$150m. remaining 16%. Asia was allocated 88%, to reach 2014’s recent annual high point of
Small taps or private placements Australia 8% and Europe 4%. A$26.0bn, especially if five-year offering
then dominated the segment, targeting Asian banks, central banks and official remains in the doldrums. This seems likely
Japanese life insurers in search of high- institutions are looking to diversify portfolios in the near term as the five-year ACGBs/
yielding Triple A long-term Australian overseas, away from local markets where Treasury spread had fallen to negative
dollar bonds to hedge daily inflows from property, resource and bank credits tend to 15bp last Thursday as US yields ratcheted
their Australian dollar-denominated life dominate. In doing so, they are drawn to the higher. The 10-year spread tightened to
insurance policies. recent back-up in yields and relative cost of just positive 2bp.
“Japanese insurers still play a large part, funding advantages at the long end of the Three-year to four-year issuance withered
but we are currently seeing much greater Kangaroo curve. The larger, more liquid, after 2011, when the Australian Prudential
interest from fund managers, central banks deals now being printed further adds to Regulation Authority left Kangaroos off its
and official institutions, particularly out their allure. list of high-quality liquid assets for Basel
of Asia, alongside selective demand from The AFRICAN DEVELOPMENT BANK priced a III purposes, thereby depleting the natural
Australia and Europe,” said Paul White, A$360m 3.35% 10.5-year Kangaroo on bank-balance-sheet demand for this short-
global head of syndication at ANZ. January 30 at a yield of 3.38%, a decent term paper.
This year has already delivered 13 pick-up over the 3.1575% to 3.21% yield JOHN WEAVERS
types, 34% were private banks, 33% were The proposed notes would have a tenor
asset managers, 32% were banks, and 1% of no longer than 10 years, it said in a stock
CHINA were corporations. exchange filing.
Orders for the five-year tranche came to Proceeds from the issue, which needs
US$800m from 45 accounts. Asia took 88% shareholder approval, will be used
DEBT CAPITAL MARKETS and Europe got 12%. In terms of investor to finance construction of projects,
types, 53% were asset managers, 26% were investments or acquisitions in the home
››GREENLAND DRAWS ROBUST ORDERS private banks, 10% were banks and 11% furnishing-related areas, as well as
were corporations. replenishment of working capital.
GREENLAND HOLDING GROUP, rated Ba1/BB/ Greenland Global Investment is the Last September, the operator of Chinese
BB, drew final orders of US$1.9bn for a issuer of the Reg S notes, while Greenland shopping malls for home furnishings issued
US$700m dual-tranche offering of US dollar Holding Group is the guarantor. The notes US$300m of 3.375% five-year bonds at
senior unsecured notes. have an expected Ba2 rating from Moody’s. 99.413 to yield 3.504%.
The Chinese property developer priced BOC International and China Citic Bank
on February 2 US$400m of 5.25% three-year International were joint global coordinators, ››FANTASIA PRICES 364-DAY NOTES
notes at 99.317 to yield 5.50% and US$300m as well as joint bookrunners and joint lead
of 5.90% five-year notes at 99.043 to yield managers with China Chengtong and VTB Capital. FANTASIA HOLDINGS GROUP,rated B2/B+
6.125%, both at the tight end of final (Moody’s/S&P), drew final orders of
guidance ranges and well inside the initial ››RED STAR MACALLINE EYES US$700M US$1.1bn from 94 accounts for US$300m of
5.750% area and 6.375% area, respectively. short-term US dollar senior bonds.
Proceeds will be used for debt RED STAR MACALLINE GROUP, rated BBB/BBB The Chinese property developer offered
refinancing and general corporate (S&P/Fitch), said its board had approved the unrated 364-day Reg S notes at par
purposes. the issuance up to US$700m of US dollar to yield 7.25%, well inside initial price
The three-year tranche drew orders of notes, via wholly owned subsidiary Hong guidance of 7.5% area.
US$1.1bn from 47 accounts. Asia took 87% Kong Red Star Macalline Universal Home Proceeds will be used for debt repayment.
and Europe got 13%. In terms of investor Furnishings. Asia took 99% of the notes and Europe
Two Chinese local government financing had asked for more price concessions due to guarantor. The Reg S notes have an expected
vehicles braved the volatile market last the poor overall sentiment. rating of BB+ (Fitch).
Wednesday to print US dollar bonds for a Zhanglong still has US$200m of offshore Proceeds will be used for domestic debt
combined US$500m, as anchor orders gave debt issuance quota available after the latest refinancing and project investments.
bookrunners the confidence to proceed. issue, according to another banker. Shangrao has assets in infrastructure
FUJIAN ZHANGLONG GROUP, based in Shangrao Investment has used up its construction, tourism, water supply and
Zhangzhou in Fujian province and rated BB+ entire US$500m quota after the latest waste-water treatment, state-owned asset
(Fitch), priced US$300m 5.60% three-year issue, as one of its subsidiaries, SHANGRAO management and other businesses.
notes at 99.321 to yield 5.85%, inside initial CITY CONSTRUCTION INVESTMENT DEVELOPMENT Wholly owned subsidiary Shangrao
guidance of 6.0% area. GROUP, used part of it last December for Investment Holdings International is the issuer
Shangrao Investment Holding Group, US$300m of three-year bonds priced at par of the Reg S unrated notes and Shangrao
based in Shangrao in Jiangxi province, priced to yield 5.70%. Investment Holding Group is the guarantor.
US$200m 5.70% three-year notes at 98.116 Shangrao’s 5.70% 2020s were quoted at Proceeds will be used to finance existing
to yield 6.40%, versus initial guidance of a cash price of 99.625/100.125 or a yield of projects, repay bank borrowings and meet
6.5% area. 5.841%/5.650% in the secondary market late general corporate needs.
People familiar with the issues said both Thursday morning, according to Tradeweb. CEB International was sole global
were heavily anchored. The notes have a BB+ rating from Fitch. coordinator on Zhanglong’s issue. It was also
The transactions came amid heightened Based on this, both newly priced notes joint bookrunner and joint lead manager
volatility in global markets with stocks from Zhanglong and Shangrao offered with Mizuho Securities, Bank of China, China
tumbling and the 10-year US Treasury yield higher yields. Industrial Securities International, Chiyu
spiking to a four-year high on expectation Zhanglong’s new bonds were quoted at a Banking, Fortune (HK) Securities, Industrial
of faster rate hikes in the US in reaction to cash price of 98.875/99.375 late Thursday Bank, Hong Kong branch, SPDB International
inflationary pressure. morning, while Shangrao’s notes were and Wing Lung Bank.
“Anchor investors’ interest in the deal quoted at 97.75/98.25, according to a trader. SPDB International was sole global
was not affected by recent market volatility, Zhanglong is involved in trading, water coordinator on Shangrao Investment’s deal.
which gave us confidence to launch the supply, real estate and construction It was also joint bookrunner and joint lead
deal,” said a banker on the Zhanglong businesses. manager with Shanghai Pudong Development
issue. Its bonds were issued via wholly owned Bank, Singapore branch, BOC International
However, he admitted that other investors unit Full Dragon (Hong Kong) International and Orient Securities (Hong Kong).
had become more cautious and picky, and Development and Zhanglong serves as CAROL CHAN
SYNDICATED LOANS
Joyson to fund Takata buy ››BOCOM UNIT INCREASES LOAN SIZE
Loans Deutsche Bank and ICBC arranging two separate facilities has
BANK OF COMMUNICATIONS FINANCIAL LEASING
signed a bigger-sized three-year onshore
Deutsche Bank and Industrial and Commercial operations through Luxembourg-registered loan of US$430m, following commitments
Bank of China are arranging two separate Joyson KSS Auto Safety, which owns 100% from six banks in general syndication.
loans totalling US$1bn to help NINGBO JOYSON of Michigan-based parts supplier Key Safety Mandated lead arrangers and
ELECTRONICS fund its US$1.6bn purchase of Systems. bookrunners DBS Bank, HSBC, SMBC and
Japan’s Takata. The Chinese company acquired KSS in a Westpac each committed US$75m. The four
Both loans, likely to have five-year US$920m deal in 2016 and raised US$554m- launched the loan at a size of US$300m in
maturities, are expected to be signed in the equivalent through a five-year term loan in early November, offering a top-level all-in
next few weeks as the acquisition is expected May that year to finance the acquisition. The pricing of 120bp, via an interest margin of
to be completed before the end of the first Ningbo branch of Bank of China and ICBC 108bp over Libor and an average life of 2.76
quarter. were co-lead arrangers on the loan, split into years.
Joyson, a Shanghai-listed auto parts a Rmb2.983bn (US$454m then) tranche On November 14, the borrower signed
supplier, signed a definitive asset-purchase A paying an interest margin of 100% of the the US$300m loan with the four MLABs and
agreement with Takata on November 21 2017. PBoC rate and a US$100m tranche B with a drew down later that month.
Takata will use the proceeds to margin of 150bp over three-month Libor. Six other banks joining in general
compensate automakers, injured people and Ningbo-based Joyson set up fully owned syndication were transferred into the
relatives of people, who died because of the subsidiary Joyson KSS Auto Safety Holdings facility on January 15.
Japanese company’s defective airbags. on November 17 2017 and plans to sell In China’s syndicated loan market,
Takata filed for bankruptcy last June after a 15.15% stake for US$150m to Chinese banks are not allowed to sell down partial
more than 100m of its airbags were recalled state-backed private equity SDIC Fund commitments. They can either sell down
because they could inflate explosively and Management. Joyson, meanwhile, will further their entire exposure or hold on to it until
spray metal fragments. inject US$250m to hold an eventual 84.85% maturity.
The transaction still needs approval from stake in Joyson KSS Auto Safety Holdings, BoCom Financial Leasing, rated A3/
Takata’s creditors’ committee, courts in the which owns 100% of Joyson KSS Auto Safety, A–/A, is a wholly owned unit of Bank of
US and Japan, as well as regulators in the two according to a company stock filing on Communications, China’s fifth-largest listed
countries and China. January 3. bank in asset terms.
Joyson is acquiring Takata’s viable YAN JIANG For full allocations, see www.ifrasia.com.
Barclays and Credit Suisse are the joint the average valuation of listed peers in the times the historical earnings of the sector.
bookrunners. railway and other transport equipment China Merchants Securities is the sponsor.
manufacturing industry. Proceeds will be used for working capital.
››GANSU LENDER EXERCISES GREENSHOE The institutional tranche was about 565 The float still needs written CSRC
times covered and the retail part 7,452 approval.
BANK OF GANSU has exercised in full the times covered before clawback. After
greenshoe option of its recent Hong Kong clawback, 90% of the shares were sold to ››CSRC CLEARS THREE FOLLOW-ONS
IPO. retail investors.
The north-western Chinese bank raised China Securities was the sponsor. HUANENG POWER INTERNATIONAL has cleared a
an additional HK$893m from the sale of The manufacturer of railway equipment China Securities Regulatory Commission
332m shares at HK$2.69 each. Including the plans to use the proceeds for the hearing for a proposed private share
greenshoe, the bank raised HK$6.84bn from production of railway equipment and for placement of up to Rmb5bn.
the IPO. working capital. The power producer is looking to make
BOC International, CCB International, CMB available not more than 800m A-shares at
International, Guotai Junan International and ››JIANGSU LEASING COMPLETES IPO a floor price to be set on the first day of
Huatai Financial were joint sponsors on the issuance.
float. The five banks were also joint global JIANGSU FINANCIAL LEASINGhas raised Rmb4bn Citic Securities is the sponsor. Proceeds will
coordinators and joint bookrunners with from a Shanghai IPO of 640m shares, or be used to fund wind and thermal power
Haitong International. ABC International, ICBC about 21.4% of its enlarged capital, at projects. The placement still needs written
International and CSR International were the Rmb6.25 each. CSRC approval.
other joint bookrunners. It ranks as only the second listed TIANJIN CAPITAL ENVIRONMENTAL PROTECTION
financial-leasing company in the A-share GROUP has received written CSRC approval
››BOYA PUTS OFF PRIVATE PLACEMENT market and the first to complete an IPO, for a proposed private placement of
opening a new source of funding for the A-shares of up to Rmb1.84bn.
BOYA BIO-PHARMACEUTICAL GROUP has postponed fast-growing, capital-intensive sector. The company, listed in Hong Kong and
bookbuilding for a proposed private share Bohai Capital, a unit of Chinese Shanghai, plans to offer not more than
placement of up to Rmb1bn due to the conglomerate HNA Group, went public in 285m shares at a floor price to be set on the
recent stock-market turmoil. Shenzhen through a backdoor listing in first day of issuance.
The ChiNext-listed producer of blood 2011. Citic Securities is the sponsor. Proceeds will
products, which launched the placement Jiangsu Leasing’s IPO price was at a 31% be used for sewage-processing, as well as
on February 5, decided to suspend the discount to the average valuation of listed energy-cooling and heating-supply, projects.
offering three days later because of the peers in the leasing industry. SHAANXI INTERNATIONAL TRUST has cleared a
high volatility in the A-share market, The institutional tranche was about 130 CSRC hearing for a proposed rights issue of
according to a company filing. times covered and the retail part 1,375 up to Rmb3bn. The trust company plans to
The Shanghai Composite Index fell 5.78% times covered before clawback. After offer up to 927m right shares on a 3-for-10
in the first four days of last week, following clawback, 90% of the shares were sold to basis.
the massive sell-off in the US market on retail investors. Largest shareholder Shaanxi Coal
February 5, when both the S&P 500 index Huatai United Securities was the sponsor and Chemical Industry Group, which
and the Dow Jones Industrial Average on the IPO, proceeds of which will be for owns 34.58% of SIT, will take up its full
suffered their biggest single-day percentage working capital. entitlement.
drops since August 2011. China Securities is the sole bookrunner.
Boya said in the filing that it would ››REGULATOR APPROVES FOUR FLOATS Proceeds will be used for working capital.
relaunch the placement at a proper time. The company still needs written CSRC
“Although the deal has temporarily The China Securities Regulatory approval.
suspended, we are still confident to get it Commission has approved four applications
done later,” said a source familiar with the for listings to raise a combined Rmb5.1bn. ››CNPC COMPLETES RECORD EB ISSUE
situation. HUABAO FLAVOURS AND FRAGRANCES, the largest
“Actually, we have seen enough demand of the four, is premarketing a ChiNext IPO CHINA NATIONAL PETROLEUM CORP has raised
during soft marketing, but, under the of about Rmb2.38bn, with Zheshang Securities Rmb20bn from a public offering of five-
current market conditions, investors prefer as sponsor. year exchangeable bonds, the largest
to wait until the stock market shows some The spin-off of Hong Kong-listed Huabao such transaction in the Chinese domestic
signs of stabilisation.” International plans to offer not more than market.
Boya plans to offer not more than 37.50m 61.59m shares, or about 10% of its enlarged The securities can be exchanged for the
shares at a floor price to be set on the first capital. A-shares of PETROCHINA after 12 months.
day of issuance. Proceeds will be used for a It will start bookbuilding on February 13. Institutional investors bought 70% of the
production project. Proceeds will be used for flavours securities and retail investors purchased the
Great Wall Securities has been named sole and food production projects, as well as rest. The retail tranche was about 31 times
bookrunner. working capital. covered, according to an exchange filing.
CHINALIN SECURITIES cleared a CSRC hearing Being the first public EB issue of the year,
››KTK CONCLUDES SHANGHAI IPO for a proposed Shenzhen IPO of 270m the oil giant set more investor-friendly
shares, or about 10% of its enlarged capital. terms than for its initial outing last year,
KTK GROUP has raised Rmb1.37bn from a The Tibet-based brokerage may raise in a sign that Chinese issuers have to work
Shanghai IPO of 42m shares, or about 10% about Rmb1.3bn from the IPO, based on its harder to woo investors after a flood of
of its enlarged capital, at Rmb32.69 each. 2016 earnings per share of Rmb0.24 and equity-linked offerings and an increase in
The IPO price was at a 52% discount to the one-month average valuation of 22.57 onshore bond yields.
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C are expected to be 100bp and 180bp over in the high 100s over Hibor.
Libor, respectively, while tranche B will IT FINANCE is the borrower, while Hong
HONG KONG offer a margin of 90bp over Euribor. Kong-listed IT and three indirectly wholly
Last August, Akbank raised the owned subsidiaries are guarantors, the
US$1.15bn-equivalent loan from 38 banks. company says in a stock filing on January
DEBT CAPITAL MARKETS Emirates NBD Capital, ICBC Turkey 31, the day of signing.
and Standard Chartered were the joint Funds will refinance a Rmb894m
››ZH INTERNATIONAL PLANS US$200M NOTES coordinators and bookrunners of the (US$142m) 6.25% five-year bond due on
transaction, which comprised US$543m May 15 2018 and also fund working capital
ZH INTERNATIONAL HOLDINGSplans to raise and €515m tranches, of which US$945m- requirements.
US$200m from the sale of US dollar short- equivalent is for one year and US$205m is
term notes to meet general corporate for two years. The one-year money offered a ››UA FINANCE OPTS FOR MORE
needs. total cost of 135bp over Libor for US dollar
The Reg S notes, with a coupon of 7.50%, drawings and 125bp over Euribor for euro UNITED ASIA FINANCE has increased its four-year
will be sold at par. The notes, expected to drawings, while the two-year money pays a loan to HK$850m from HK$800m originally
be issued on February 12, will mature on total cost of 220bp over Libor. after commitments from three banks.
January 31 2019. Akbank is one of the largest private- Mandated lead arrangers and
Ever Diamond Global, the controlling sector lenders in Turkey. bookrunners Taipei Fubon Commercial Bank
shareholder of the Hong Kong-listed and Taishin International Bank launched the
company, will be the guarantor on the ››COGARD RESURFACES FOR HK$1.781BN dual-tranche loan in early January at a top-
notes. AMTD is the placing agent. level all-in pricing of 222.9bp, based on an
ZH International is a Hong Kong-based COUNTRY GARDEN HOLDINGS has launched a interest margin of 200bp over Hibor and a
investment holding firm involved in HK$1.781bn three-year term loan, barely blended average life of 3.5 years.
security investment, property investment four months after the real-estate developer Funds are for refinancing and working
and management, as well as hotels. signed a US$1.25bn facility. capital purposes. Signing was scheduled to
BNP Paribas is mandated lead arranger take place last Thursday.
and bookrunner on the latest financing, The latest borrowing follows a HK$1.6bn
SYNDICATED LOANS which pays an interest margin of 230bp four-year facility UA Finance closed in
over Hibor and has a 2.5-year average life. February 2017. That loan paid a top-level
››ZHONGYU GAS DOUBLES LOAN SIZE MLAs joining with HK$200m or more all-in of 245bp, based on a margin of 215bp
get an all-in pricing of 290bp over Hibor, over Hibor and an average life of three
ZHONGYU GAS HOLDINGS has doubled a three- via a 150bp participation fee, while years, according to Thomson Reuters LPC
year term loan to US$400m-equivalent from lead arrangers with HK$160m–$199m data.
the US$200m-equivalent target. get an all-in of 284bp, via a 135bp fee, For full allocations, see www.ifrasia.com.
Bank of China (Hong Kong) was the and arrangers with HK$80m–$159m get
mandated lead arranger and bookrunner of an all-in of 278bp, via a 120bp fee. The
the financing, which comprises tranches of deadline for commitments is March 8.
US$236.5m and HK$1.2753bn (US$163m). Funds are for the acquisition of a 15%
The loan pays an interest margin of stake in real-estate services provider INDIA
210bp over Libor or Hibor and has an E-House (China) Enterprise Holding. The
average life of 2.675 years. Banks were target’s shares will be pledged as part of the
invited to commit in either US or Hong security package. DEBT CAPITAL MARKETS
Kong dollars for an all-in pricing of 250bp, Last October, CoGard raised a
based on an upfront fee of 107bp. US$1.249bn-equivalent four-year loan from ››RAJASTHAN POWER TRIO PLANS BONDS
Funds are for refinancing and working 15 lenders. Bank of China (Hong Kong),
capital. Signing was on January 29. China Construction Bank, Hong Kong, Hang Three Rajasthan state-owned power
The Hong Kong-listed borrower, a unit Seng Bank, HSBC, ICBC (Asia), Shanghai companies aim to raise up to Rs122bn
of China Gas Holdings, builds and manages Pudong Development Bank, Hong Kong and (US$1.9bn) combined from rupee bonds and
gas pipelines and distributes natural gas in Standard Chartered were MLABs on that have sent requests for proposals to bankers,
China. loan, denominated in US and HK dollars. according to a source.
For full allocations, see www.ifrasia.com. Based on a margin of 249bp over Libor or Care has assigned A+ (structured
Hibor and a 3.75-year average life, banks obligation, stable) ratings to the long-
››AKBANK SEEKS ASIA BORROWING were offered a top-level all-in of 300bp via term bonds of Rs40.13bn, Rs41.63bn and
a 191bp fee. Rs40.3bn of JAIPUR VIDYUT VITRAN NIGAM, AJMER
AKBANK, rated Ba1/BB+ (Moody’s/Fitch), is in VIDYUT VITRAN NIGAM and JODHPUR VIDYUT VITRAN
the Asian market for a new loan through ››IT CLUBS HK$800M BORROWING NIGAM, respectively.
three lead banks after having raised a The notes will have credit enhancement
US$1.15bn-equivalent facility last August. Fashion apparel and accessories retailer IT in the form of a guarantee from the state
Bank of America Merrill Lynch, First Abu Dhabi has signed with four banks a four-year club government. There will be a trustee-
Bank and Industrial and Commercial Bank of loan of HK$800m. monitored escrow account and structured
China are arranging the latest financing, BNP Paribas, CTBC Bank, Hang Seng Bank payment mechanism, whereby half a
which will comprise a one-year US dollar and MUFG committed HK$200m each. year’s total debt-repayment obligation will
tranche A, a one-year euro tranche B and a The amortising loan, which has semi- be maintained in a debt-service-reserve
two-year US dollar tranche C. annual repayments starting after an 18- account.
The interest margins on tranches A and month grace period, paid an all-in pricing Last December, UTTAR PRADESH POWER CORP
Pegadaian has appointed Bahana, BNI, SYNDICATED LOANS Funds are for refinancing purposes.
Danareksa and Mandiri Sekuritas as lead The borrower last tapped the loan
arrangers. ››TIPHONE LAUNCHES US$186M LOAN market with a US$184m-equivalent three-
The funds will be used for refinancing of year revolving credit facility in December
bank loans. TIPHONE MOBILE INDONESIAhas launched a 2015. BCA, CIMB, HSBC and StanChart
Pefindo has assigned a AAA rating to the US$186m-equivalent three-year loan were the MLABs on that loan, comprising
secured bonds. through mandated lead arrangers and a Rp1.875trn tranche and a Rp625bn-
bookrunners Bank Central Asia, Bank CIMB equivalent tranche in US dollars. Based
››EXIMBANK SELLS THREE-TRANCHER Niaga and Standard Chartered. on a 2.75-year remaining life, the all-in
The loan is split into tranches of pricing was 241.8bp (onshore) and 221.8bp
INDONESIA EXIMBANK has sold Rp2.46trn of Rp1.25trn (US$92m) and US$94m. (offshore) via margins of 220bp and 200bp,
three-tranche rupiah bonds, according to a The interest margin is 300bp over Jibor respectively.
source close to the transaction. for the onshore portion and 200bp over The Jakarta-listed borrower sells mobile
The bank raised Rp610bn from a three-year Libor for the offshore piece. phones, SIM cards, accessories, spare parts
at 6.35%, Rp1.65trn from a five-year at 6.7% Based on a 2.75-year remaining life and and offers phone repair services.
and Rp206bn from a seven-year at 6.9%. an early-bird fee of 5bp, lenders can join
Danareksa, DBS Vickers, CIMB and Indo the offshore tranche for a top-level all-in ››INDORENT WORKS ON US$100M LOAN
Premier were lead arrangers on the issue, pricing of 218.2bp and the lead arranger
which has a AAA Pefindo rating. title, through a 45bp management fee, for Car rental company CSM CORPORATAMA,
Indonesia Eximbank has yet to announce US$20m or more, or an all-in pricing of also known as Indorent, is about to
the issue officially. 212.7bp and the arranger title, via a 30bp launch a US$100m financing into general
fee, for US$10m–$19m. syndication with six banks at the top.
››BRI RAISES TWO-TRANCHE FUNDS The deadline to commit for the early-bird ANZ, CIMB, CTBC Bank, DBS, Standard
fee is February 21. Chartered and SMBC are mandated
BANK RAKYAT INDONESIA has raised Rp2.4trn
from dual-tranche bonds, according to a
source close to the sale.
The Indonesian state lender issued a
Rp1.77trn five-year portion at 6.65% and a
Rp677bn seven-year piece at 6.9%.
Poor response to Vedanta refi
Bahana Securities, BCA Sekuritas, Danareksa Loans Five-year facility of US$575m attracts just two banks in general syndication
Sekuritas, DBS Vickers Securities and Indo
Premier Securities were lead arrangers. A five-year amortising loan of US$575m for B and D. Axis, Barclays, Citigroup, Credit
Pefindo rates the bonds AAA. London-listed VEDANTA RESOURCES met with a Suisse, First Abu Dhabi Bank, ICICI Bank and
BRI plans to issue Rp12trn–Rp15trn poor response before closing in December StanChart were the MLABs on the entire
of bonds under a three-year programme after just two banks joined in general financing.
starting in the second half of 2018, with a syndication. Interestingly, Barclays and Credit Suisse
Rp5trn target for this year, Reuters reported Federal Bank and Punjab National Bank ended up with zero final holds, a rarity in
last month, citing CFO Haru Koesmahargyo. were the lenders, with a combined US$80m, Asia syndicated loans. Axis Bank and ICICI
BRI also plans to issue Rp5trn of bonds in general syndication, meaning mandated underwrote tranches B and D.
this year off an existing programme, he lead arrangers, bookrunners and underwriters Banks joining both facilities A and C as
said. Barclays, Credit Suisse, DBS Bank, First Abu MLAs on a pro-rata basis were offered a
Dhabi Bank and Standard Chartered took blended top-level all-in of 233.4bp. The
››ADIRA TARGETS RP1.5TRN VIA BONDS US$99m each. blended interest margin is 205bp and the
The outcome was not surprising due to blended remaining average life is 3.17 years.
ADIRA FINANCEaims to raise Rp1.5trn from the timing of the loan, which was signed in On the other hand, Vedanta’s US$575m
five-tranche bonds with rupiah and sukuk December after having been launched into loan did not attract lenders, despite offering
portions, according to an offer document. syndication in mid-September. It followed a a richer top-level all-in of 345.46bp based on
The Indonesian consumer finance firm US$651m four-tranche loan for Cairn India a margin of 310bp over Libor and a remaining
has put out indicative price ranges of Holdings, which merged with Vedanta last average life of 4.23 years.
5.85%–6.25% for rupiah bonds of 370 days, year. Vedanta’s loan complemented US$1bn of
6.25%–6.75% for those of two years, 6.95%– Cairn India’s loan refinanced all debt seven-year non-call four senior unsecured
7.45% for those of three years, 7.00%–7.50% at Vedanta wholly owned unit Twin Star bonds it completed in early August. The
for those of four years and 7.05%–7.55% for Holdings, also the borrower on the latest bonds were priced at 6.125%, inside initial
those seven years to raise Rp1.3trn. The borrowing. guidance of 6.375%. The five leads on the
remainder will come from Islamic paper The US$651m four-tranche loan for Cairn loan, along with JP Morgan, were joint global
with similar maturities and prices. India comprises a US$155.125m three-year coordinators, joint lead managers and joint
Bookbuilding began on February 8 and facility A, a US$93m five-year facility B, a bookrunners on the bonds.
will close on February 23. US$309.875m five-year facility C and a Proceeds from the loan and the bonds were
Mandiri, DBS Vickers, RHB, Indo Premier US$93m five-year facility D. Only facilities used to refinance debt, including a tender
Sekuritas and Trimegah Sekuritas are lead A and C were syndicated to foreign lenders, offer Vedanta announced in late July for two
arrangers for the issue, rated AAA (Pefindo). while Indian banks took up tranches B and D. outstanding bonds – US$774.8m of 6.0%
The funds will be used for consumer Seven banks joined tranches A and C, while 2019s and US$900m of 8.25% 2021s.
financing activities. one Indian lender came forward for tranches PRAKASH CHAKRAVARTI, CHIEN MI WONG
Promoters and private-equity investors are Since the budget on February 1, the above each of ICICI Lombard, SBI Life
expected to speed up plans to sell stakes benchmark S&P BSE Sensex Index has lost Insurance and HDFC Standard Life Insurance
through IPOs and block trades with the new some of its lustre. For the month to last comprised only secondary shares. The IPOs
10% long capital gains tax to kick in on April 1. Thursday, it was down 5.7% as the budget and of over US$1bn each of General Insurance
The LCGT, proposed in the federal budget, the global share volatility heightened selling. Corp of India and New India Assurance had
will require any investor selling shares in the In the past, there was no LCGT on stock- only a small primary component.
stock market to pay tax on the difference market exits. However, exits in the private “Promoters and PEs have had it so good
between the issue price and the net asset market attracted a 20% LCGT for resident that it was only natural someone would tax
value of the company on January 31 2018. investors and 10% for foreigners. them,” said another ECM banker.
Bankers say that will give major investors Bankers see a booming public market as For now, the Indian IPO pipeline looks good
an incentive to sell sooner rather than later. the best option for promoters and PE players and the market is awaiting the floats of ICICI
But the rules are also likely to raise valuation to monetise their assets. Securities, Bandhan Bank, Reliance General
expectations as the exit prices will have to Equity issues from Indian companies Insurance, Lemon Tree Hotels and Sandhar
compensate for the new tax. totalled US$25bn in 2017, versus US$9.2bn Technologies in the first quarter. The Rs45bn
“Promoters waiting for better valuations in 2016, according to Thomson Reuters data. (US$700m) ICICI Securities and Rs13bn
will give in as the new tax will eat into their IPOs raised US$11.1bn, up 176% year on year Lemon Tree IPOs comprise only secondary
gains after April,” said a Mumbai-based ECM and the highest since 2007. components, while those of Bandhan, Sandhar
banker. “We’re just hoping the markets will A majority of these IPOs involved stake and Reliance General involve a mix of primary
be back in positive territory after the recent sales from controlling shareholders. For and secondary shares.
sell-off.” example, the IPOs of close to US$1bn and S ANURADHA
lead arrangers and bookrunners on its president, who failed in an attempt last The loan, signed on February 2, is split
the facility, which has an unspecified month. into an ¥8bn tranche A, maturing on
greenshoe option. KK Ocean, president Hirofumi Kawai’s December 31 2024, and a ¥99bn tranche B,
A preliminary invitation has been sent special-purpose company, reached an due on December 31 2027.
to participants for a roadshow to be held agreement with Toei Reefer Line’s top Tranche A will be repaid in 10 semi-
in Singapore on February 7. The tenor and shareholders Reno and Office Support, annual instalments of ¥411m each, with
pricing terms have yet to be released. investment funds related to Japanese a balloon payment of ¥3.89bn to follow,
Funds will be used for refinancing and activist investor Yoshiaki Murakami, with while tranche B will be repaid in 16 semi-
general corporate purposes. a revised offer of ¥800 (US$7.34) per share, annual instalments of ¥5.089bn apiece,
The borrower last completed a US$100m up from the earlier ¥600. with a balloon payment of ¥17.576bn
three-year loan in January 2016. CTBC, DBS, The revised offer for Jasdaq-listed Toei to follow. The first instalment on both
StanChart and SMBC were lenders. The Reefer Line would be launched on Thursday tranches is on December 31 2019.
loan, which attracted six others in general and end on March 23, the frozen tuna Mizuho Bank was the arranger and agent,
syndication, offered a top-level all-in prices shipping company said on Wednesday. MUFG and SMBC came in as co-arrangers,
of 305.68bp or 275.68bp for the offshore MUFJ had committed a five-year senior while Development Bank of Japan, Norinchukin
and onshore tranches, based on margins of loan of ¥7.2bn to back the MBO before Bank and Sumitomo Mitsui Trust Bank joined
280bp and 250bp over Libor, respectively. increasing it to ¥9.3bn. as lenders.
The average life is 2.29 years. Tokio Marine Mezzanine also doubled its Skylark Restaurants, a unit of Skylark, is
Indorent, an affiliate of Indomobil mezzanine investment in preferred stock to the guarantor.
Finance Indonesia, provides vehicle and ¥2bn from ¥1bn. Financial covenants are net assets must
heavy-duty equipment financing services. Last month, Kawai withdrew his bid for be maintained at a minimum of 75% of the
Indorent and Indomobil Finance are units Toei Reefer Line after failing to buy the highest amount of net assets as shown on the
of Indomobil Multi Jasa, which under the minimum 3,689,400 shares, or 66.7% of consolidated balance sheet as at December
control of conglomerate Salim Group. the company, required for the purchase 31 for the fiscal years 2016, 2017 or 2018; the
to proceed. He ended up with 2,520,429 borrower must not record loss in its financial
shares, or a 45.5% stake. statements for two consecutive fiscal years;
Since the announcement of the MBO in and the net leverage ratio should be less than
early November, the investment funds had or equal to: 4.00x for every quarter from April
JAPAN increased their stakes in Toei Reefer Line to 1 2019 to March 31 2021, 3.75x for every
16.7%, according to their January 15 filing quarter from April 1 2021 to March 31 2023,
to the Tokyo Stock Exchange. 3.50x for every quarter from April 1 2023 to
SYNDICATED LOANS March 31 2025, 3.25x for every quarter from
››SKYLARK GETS ¥107BN FOR REFINANCING April 1 2025 to March 31 2027, and 3.00x for
››TOEI REEFER MBO BACK ON TABLE every quarter from April 1 2027.
Tokyo Stock Exchange-listed restaurant Funds are to refinance a ¥107.1bn loan
TOEI REEFER LINE’s
management buyout is back chain operator SKYLARK signed a ¥107bn due on June 24 2019.
in the limelight after a revised bid from amortising term loan for refinancing. Skylark, which, as of December 31,
operated 3,144 restaurants worldwide SoftBank Group CEO Masayoshi Son international investors, while the other
last tapped the syndicated loan market told reporters last week that the company 50% is going to domestic buyers. Of the
in February 2017 for a ¥30bn three- wanted to list the unit this year. domestic tranche, 25% is earmarked for
year amortising term loan for capital According to last Wednesday’s press institutional investors, while the rest is for
expenditure. release from SoftBank Group, the company retail buyers.
is currently accelerating its global The units are marketed at a discount of
››CRE LOGISTICS RAISES ¥12.37BN investment activities through the SoftBank 2.0%–4.5% to the market prices. The units
Vision Fund and other vehicles to drive will price on any day between February 14
CRE LOGISTICS REITsigned a ¥12.37bn bullet overall growth. and February 20.
term loan last Monday for property With the proposed spin-off, the There is a 90-day lock-up period for the
acquisitions. respective roles and valuations of the issuer and a 180-day lock-up spell for GLP
The loan comprises a ¥3.68bn four-year group company and the mobile unit will be Capital.
tranche, with an interest margin of 40bp clear, making it possible to communicate Books for the international offering opened
over three-month Tibor, a ¥3.68bn five-year information on the group’s businesses to last Thursday and will close on February 13.
tranche, with a margin of 45bp over three- the market with greater clarity. The company will use the proceeds
month Tibor, a ¥3.68bn six-year tranche, SoftBank Corp will remain a major mainly as part payment towards the
with a margin of 50bp over three-month consolidated subsidiary of the SoftBank purchase of six logistics properties and
Tibor, and a ¥1.33bn one-year tranche, with Group’s telecommunications business, even the solar panels installed at 13 existing
a margin of 35bp over one-month Tibor. after being listed, according to the press properties.
SMBC was the mandated lead arranger, release. Citigroup, Mizuho, Nomura and SMBC Nikko
Mizuho Bank and MUFG came in as co- Last month, SoftBank Group was are the joint global coordinators. The four
arrangers, while Development Bank of Japan, reportedly planning to list its mobile banks are also joint bookrunners on the
Nishi-Nippon City Bank and Resona Bank joined phone unit in Tokyo and overseas, international offering.
as lenders. possibly London, to raise as much as ¥2trn
Funds, drawn last Wednesday, are to buy (US$18bn).
four logistics facilities.
The REIT, which invests solely in ››GLP J-REIT LAUNCHES FOLLOW-ON
logistics facilities, was listed on the TSE last MALAYSIA
Wednesday. has launched a global offering
GLP J-REIT
of new investment units to raise up to
¥70.4bn, based on the company’s closing DEBT CAPITAL MARKETS
EQUITY CAPITAL MARKETS price of ¥124,800 last Monday, according to
a deal term-sheet. ››DANAINFRA SELLS M$4BN SUKUK
››SOFTBANK SET TO LIST MOBILE UNIT The base deal comprises 524,804 units,
while there is an over-allotment option State-owned DANAINFRA NASIONAL sold M$4bn
Japanese conglomerate SOFTBANK GROUP has of up to 39,361 units. The over-allotment (US$1.03bn) of Islamic bonds in a multi-
started preparations to list mobile phone option represents 7.5% of the base size. tranche transaction last week through five
unit SOFTBANK CORP. Half of the offer is being offered to joint lead managers.
CHINA EASTERN AIRLINES will give Japanese BoC, Mizuho and SMBC Nikko are joint like this, they apparently need internal
investors a taste of unfamiliar bond global coordinators and joint bookrunners on approvals,” said a banker on the deal.
structures as it makes its yen market debut. the latter two structures, with Daiwa, Morgan As the structures are also new to Japanese
The Chinese state-owned carrier spent Stanley and Nomura as joint bookrunners. bankers, they are not fully certain if the
three days briefing investors last week for The issuer is not expected to come quickly schemes will be well received. However, at
a three-pronged offering, including bank to market after last week’s roadshow, so as the same time, they hope that there will be
guarantees and standby letters of credit. to give some time for Japanese investors to more yen issuance from Chinese borrowers,
One piece will carry a guarantee from familiarise themselves with the structures. even ones with lower credit ratings, if
Sumitomo Mitsui Banking Corp, Hong Kong Although the proposed features are quite Japanese investors become familiar with such
branch, and have an expected rating of common in China, they are not in Japan – schemes.
AA from JCR. SMBC Nikko is a sole global especially the SBLC – and investors need to CEA filed information on the programme
coordinator and joint bookrunner, while DBJ secure internal approvals first. to the Tokyo Pro-bond market on February 2,
Securities is a joint bookrunner. “China Eastern Airlines does not have registering to issue up to ¥50bn (US$456m).
Two other pieces will have standby letters of credit ratings, but can become an investment The bonds will be marketed under the pot
credit from Bank of China, Tokyo branch, and target as the standby letter of credit is used system, not the traditional retention system,
Industrial Commercial Bank of China, Shanghai for credit enhancement, but, because this is and are likely to have short maturities. The
Municipal branch, respectively. Both bonds a bit different from a guarantee and because pricing date is not set yet.
have expected ratings of A1 from Moody’s. investors didn’t anticipate something TAKAHIRO OKAMOTO
Private-equity firms Hopu Investment all-in of 135.4bp, based on a blended Fitch has said it believes leverage will
Management and Vanke Real Estate (Hong interest margin of 124.06bp over Libor and gradually decline, but that it may take more
Kong) are raising a US$3.38bn loan to back blended tenor of 3.095 years. The opening than 24 months for GLP to deleverage below
their equity contributions to a consortium margins are 135bp, 120bp, 110bp and 135bp 50%. GLP’s leverage increased from below
that acquired Global Logistic Properties. for tranches A1, A2, B and the revolver, 25% at end-March 2017 after it took on debt
China Construction Bank (Asia) and respectively. SPV Nesta Investment Holdings to provide financing to its new shareholders
Industrial and Commercial Bank of China is the borrower. to fund its buyout.
are the mandated lead arrangers and The loan, among the largest LBO Fitch expects the holding company’s
bookrunners. financings from Asia, will add to the debt of interest coverage ratio, which is the ratio
Special-purpose vehicles NESTA US$5.1bn at the operating subsidiaries of of holding company’s recurring Ebitda to
INVESTMENT PARTNERS II and NESTA INVESTMENT GLP, which existing lenders could roll over. interest paid, to be healthy at above 2x,
PARTNERS III are the borrowers on the loan. Last July, GLP, together with its despite the increase in its loans. The agency
NIP II’s facility comprises a US$1.817bn subsidiaries and Cayman Islands- expects GLP’s recurring Ebitda interest
term loan and a US$223m revolving incorporate NIH jointly said that the SPV coverage to be 2.5x for the year ending
credit, while NIP III’s borrowing is split would acquire all the shares of Asia’s March 2018.
into a US1.23bn term loan and a US$110m biggest warehouse operator for a cash The company has put in place a
revolver. consideration of S$3.38 per share, valuing deleveraging plan, but its successful
The blended interest margin is 275bp the company’s equity at about S$16bn execution within the next 24 months may not
over Libor, while the blended tenor is 4.68 (US$11.9bn). be within GLP’s control. GLP’s deleveraging
years. China Vanke, the parent of Vanke Real plan includes asset recycling initiatives in
Lenders receive a top-level blended Estate, is the largest shareholder in NIH China and Japan to take advantage of the
all-in pricing of 290bp and the mandated with a 21.4% stake and contributed around low interest rates there.
lead arranger title for US$200m and US$2.45bn, according to its filing with the In December, GLP announced that it had
above, based on a blended participation Hong Kong stock exchange on January 22. obtained approval from the China Securities
fee of 70.2bp, an all-in of 285bp and the Other members of the buying consortium are Regulatory Commission to issue up to
lead arranger title for US$100m–$199m, Hillhouse Capital Group and SMG Eastern, Rmb12bn (US$1.88bn) of bonds in Shenzhen
via a fee of 46.8bp, and an all-in of 280bp an entity under the full control of GLP CEO for projects related to China’s Belt and Road
and the arranger title for US$50m–$99m, Ming Zhi Mei, as well as Bank of China Group Initiative. Fitch has said the issuance will
via a fee of 23.4bp. The deadline for Investment. take advantage of the low leverage of GLP’s
commitments is February 9. GLP was delisted from Singapore Chinese operating company.
In December, GLP closed a US$4.108bn Exchange on January 22. GLP’s US$46bn of globally diversified
leveraged buyout loan to support the On February 2, Fitch downgraded GLP’s logistic assets were located in China (34%),
acquisition. Citigroup, DBS Bank, Goldman credit ratings to BBB from BBB+, on its the US (33%), Japan (23%), Brazil (6%) and
Sachs, MUFG and Mizuho Bank were expectations that the holding company’s Europe (4%) at December 2017. GLP is the
original mandated lead arrangers and leverage would increase sharply to over largest logistic asset owner in China, Japan
bookrunners, while Bank of China, Bank of 70% after it drew down additional loans in and Brazil.
Communications, China Merchants Bank and January. Fitch calculates the leverage as the GLP counts several of the world’s leading
Industrial & Commercial Bank of China joined ratio of holding company net debt less net retailers and manufacturers among its
for the same title. working capital to holding company liquid clients.
That loan offered a top-level blended investment. EVELYNN LIN
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COUNTRY REPORT THAILAND
fee, or as managers with US$10m–$19m for settlement scheduled for month-end. ››SIAMGAS PLANS CGIF BONDS
a 10bp fee. The deadline for responses is Bangkok Bank, Bank of Ayudhya and UOB
March 30. Thailand are joint lead managers and SIAMGAS AND PETROCHEMICALS plans to issue
In July 2011, TPK Universal Solutions, underwriters. up to Bt2bn of five-year bonds with
a unit of TPK Holding, raised a US$200m Frasers Property is a unit of Singapore- a partial guarantee from the Credit
three-year loan. Citigroup led that loan, based property developer Frasers Property Guarantee Investment Facility of the Asian
which offered a margin of 80bp over Libor. (formerly Frasers Centrepoint), which is Development Bank.
TPK Holding, a supplier to Apple, ultimately under the control of Thai tycoon Kasikornbank, Krungthai Bank and UOB
operates in Taiwan and internationally. Charoen Sirivadhanabhakdi’s TCC Group. Thailand are joint lead managers and
It sold seven-year bonds at 2.94% in underwriters on the issue.
››TWO WIN TOP ROLE FOR ASE December. The liquefied petroleum gas distributor’s
issue will be the first baht notes from a Thai
ADVANCED SEMICONDUCTOR ENGINEERING has ››MUANGTHAI READIES BT3BN ISSUE company to come with the CGIF wrap. There
named two banks for top roles on a were two baht-denominated CGIF-guaranteed
NT$90bn (US$3bn) five-year term loan MUANGTHAI LEASING will offer bonds of up notes in the past but these were from foreign
to back its merger with peer Siliconware to Bt3bn at maturities of three and four issuers Noble Group and KNM Group.
Precision Industries. years to institutional and high-net-worth Under the guarantee, the CGIF will
Bank of Taiwan and Mega International investors at the end of the month. provide unconditional and irrevocable
Commercial Bank have been named facility The Bt2.5bn three-year piece will pay guarantee for up to 85% of the principal
agents for the loan, which has already 3.7%, while the Bt1.5bn four-year portion amount and of unpaid interest.
received total commitments of NT$200bn pays 3.95%. As a result of the wrap, the unsecured
with syndication expected to close soon. Investors can subscribe to the bonds on bonds scored a A rating from Tris, one
Coordinator Citigroup launched the loan February 23-27. The Thai auto-financing notch above Siamgas’s corporate BBB.
in late December, offering an interest company, which Tris rates BBB, will use the The guarantee will improve Siamgas’s
margin of 55bp over Taibor, with a pre-tax proceeds for working capital and business credit profile in addition to cutting funding
interest rate floor set at 1.7%. expansion. costs and allowing it to extend its maturity
Mandated lead arrangers and Bangkok Bank, Krungthai Bank and Phatra curve. Proceeds will be used for working
bookrunners committing NT$7bn or more Securities are joint lead managers and capital needs.
or NT$5bn–$6.9bn will get respective underwriters.
upfront fees of 30bp or 25bp, while MLAs
with NT$3bn–$4.9bn will get a 20bp fee, ››QUALITY HOUSES PLANS BT3BN PRINT
lead managers with NT$2bn–$2.9bn will
get a 15bp fee and managers with NT$1bn– Thai property owner and developer QUALITY VIETNAM
$1.9bn will get a 10bp fee. HOUSES plans to raise up to Bt3bn from the
Last November, China’s Anti-Monopoly sale of three-year bonds later this month.
Bureau said it had approved the merger Preliminary price talk is at a spread range SYNDICATED LOANS
conditionally, requiring both to operate of 55bp–59bp over Thai government bonds,
separately for the next 24 months. but this may change when bookbuilding ››SIX JOIN VIETINBANK FACILITY
ASE plans to create a new holding company, kicks off on February 20.
ASE Industrial Holding, before the end of May The issuer, with a A– Tris rating, is A US$100m term loan for VIETNAM JOINT
after ASE and SPIL shareholders vote on the targeting minimum proceeds of Bt2.5bn, STOCK COMMERCIAL BANK FOR INDUSTRY AND
merger at a meeting scheduled for this month. plus a Bt500m greenshoe. TRADE has seen six lenders join in general
ASE Industrial will be the borrower on the Bangkok Bank, Krungthai Bank and UOB syndication.
NT$90bn loan and ASE will be the guarantor. Thailand are joint lead managers and Mitsubishi UFJ Financial Group is sole
underwriters. mandated lead arranger and bookrunner
Proceeds are likely to refinance a Bt4bn on the loan, which has already received
3.18% bond due on February 20. commitments of over US$90m. More banks
are expected to join the loan, which will
THAILAND ››KTC LIFTS DUAL-TRANCHER TO BT2.25BN close before the Lunar New Year.
The loan, which the borrower and the
KRUNGTHAI CARD priced dual-tranche bonds of MLAB signed on December 29, pays a top-
DEBT CAPITAL MARKETS five and 10 years to raise Bt2.25bn, lifting level all-in pricing of 135bp, based on an
the issue size from an original Bt1.5bn. interest margin of 115bp and a two-year
››FRASERS PROP PLANS RETURN The Bt1bn five-year piece will pay 2.35% average life. Funds are for on-lending
and the Bt1.25bn 10-year portion will pay purposes.
FRASERS PROPERTY HOLDINGS THAILAND will sell 3.43% with respective spreads at 53bp and The borrower last raised a US$100m
bonds of up to Bt5bn (US$159m) at end- 88bp over Thai government bonds. three-year bullet loan in February 2017.
February on its market return after a Institutional and high-net-worth Deutsche Bank was the sole MLAB of
Bt2.5bn maiden issue late last year. investors can subscribe to the notes on the facility, which attracted seven other
The Thai real-estate company is expected February 13-15. lenders. The loan offered a top-level all-in
to offer tenors of three, five and 10 years to The Thai credit card services provider, of 170bp, based on an interest margin of
raise a targeted minimum of Bt3.2bn, with with a A+ Tris rating, will use the proceeds 140bp over Libor.
a greenshoe option of Bt1.75bn. for working capital and business expansion. VietinBank, one of the four largest state-
Bookbuilding is expected to be carried Krungthai Bank and UOB Thailand were owned commercial banks in the country, is
out in the week of February 19 with joint lead managers and underwriters. rated B1/BB–/B+.
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