COUNTRY REPORT THAILANDInvestors on the REIT’s books as of
August 29 are eligible for the offer, which
will be open for subscription between
September 3 and September 11.
The funds are being raised to buy a
property in Adelaide, Australia.
CGS-CIMB Securities, DBS, RHB Securities and
Soochow CSSD Capital Markets are the banks
on the transaction.
SOUTH KOREA
DEBT CAPITAL MARKETS
› KOREAN AIR PLANS THREE-YEAR BOND
KOREAN AIR LINES has hired three banks
for a proposed offering of three-year US
dollar senior unsecured notes guaranteed
by Korea Development Bank, subject to
market conditions.
Credit Suisse, KDB and UBS are joint
bookrunners and lead managers on the
proposed Reg S issue.
Korean Air started to meet investors in
Asia and Europe on August 19.
The notes are expected to be rated Aa2
by Moody’s and AA by S&P.
THAILAND
DEBT CAPITAL MARKETS
› BANK OF AYUDHYA PLANS SOCIAL BONDThailand’s BANK OF AYUDHYA plans to issue
US$220m of women entrepreneurs bonds
in Asia Pacific’s first private sector “gender”
debt issue.
Proceeds will be used to boost access
to finance and capital for women
entrepreneurs of small and medium-sized
enterprises (WSMEs) in Thailand. More than
half of such enterprises have problems
getting finance, with the funding gap in
Thailand estimated at US$25bn, said an IFC
statement.
The bonds are expected to be issued in
October and will be subscribed by IFC, a
World Bank member, which will take up to
US$150m, and Deutsche Investitions und
Entwicklungsgesellschaft (DEG), which will
take up to US$70m.
MUFG Securities Asia is sole social bond
structuring adviser, arranger and placement
agent. No other details were disclosed.
The bond will comply with the
International Capital Markets Associationsocial bond principles as well as the Asean
social bond standards.
Bank of Ayudhya, majority owned by
MUFG Bank, plans to package the WSME
loans as an attractive asset class for
investors, thereby clearing the path for
future issuance of such bonds.› BERLI JUCKER MARKETS FOUR-TRANCHERBERLI JUCKER was marketing four tranches of
bonds last Thursday in tenors of five to 10
years to raise at least Bt18bn (US$585m).
Initial price guidance was indicated in the
range of 2.65%–2.85% for a five-year tranche,
2.72%–2.92% for a six-year tranche, 2.89%–
3.05% for an eight-year tranche and 3.32%–
3.48% for a 10-year non-call five tranche.
Final pricing of the tranches had not
been released by Friday afternoon.
The Thai consumer products maker
will offer the 10-year non-call five notes
to retail, institutional and high-net-worth
investors, while the other three tranches
will be offered only to institutional and
HNW investors.
Bangkok Bank, Kasikornbank, Krungthai
Bank and Phatra Securities were joint lead
managers, retaining their roles from Berli
Jucker’s bond sale in March that raised
Bt16bn.
The bonds are rated A+ by Tris.Chailease units on funding spree
Loans CIFC taps US and Hong Kong dollar funding, CIFS lifts loan to US$250mCHAILEASE INTERNATIONAL FINANCE, a unit of
Taiwan-listed Chailease Holding, is back
for a US$250m three-year term loan, a few
weeks after launching a Hong Kong dollar
borrowing.
ANZ and Taishin International Bank are
the original mandated lead arrangers and
bookrunners of the latest financing, which
pays an interest margin of 140bp over Libor.
Banks have been invited to join as MLAs
with tickets of US$30m or more for a top-
level upfront fee of 25bp. Lead arrangers
committing US$20m–$29m earn a fee
of 15bp, while managers with tickets of
US$10m–$19m receive a 5bp fee.
Lenders receive an additional fee of 5bp
if they commit by the early-bird deadline
of September 6. The final deadline is
September 13.
The borrower’s parent is the guarantor.
Funds are for refinancing and working capital
purposes.
A US$250m three-year loan completed in
November last year had the same borrower,
guarantor, margin and top-level fee. Taishinwas also MLAB on that borrowing.
Separately, CIFC is in the market for
a HK$1bn (US$128m) loan with China
Construction Bank (Asia) and Hang Seng
Bank as MLABs. The loan pays a top-level
all-in pricing of 160bp based on a margin of
140bp over Hibor.
Based in Shanghai, the borrower provides
leasing services to the manufacturing,
construction, transportation, healthcare
and fishery industries, as well as automotive
financing.
Meanwhile, CHAILEASE INTERNATIONAL
FINANCIAL SERVICE , another unit of Chailease
Holding, has increased its multi-tranche
borrowing to US$250m from a US$200m
target after attracting 18 lenders in general
syndication.
Bank of Taiwan and Mega International
Commercial Bank were the mandated
lead arrangers and bookrunners of the
transaction, which has a US$150m three-
year tranche A available in either euros or US
dollars, a US$50m three-year tranche B and
a US$50m five-year tranche C.The three tranches offer interest margins
of 130bp, 135bp and 140bp over Libor,
respectively. The borrower will pay any
excess interest rate beyond a 35bp difference
between TAIFX and Libor. Tranches A/B and
tranche C offer top-level upfront fees of 20bp
and 30bp, respectively.
Funds are to refinance a US$195m three-
year loan the borrower raised in September- BoT and Mega also led that deal,
which offered a margin of 134bp over three
or six-month Libor. The borrower would
pay any excess interest rate beyond a
35bp difference between TAIFX and Libor.
Lenders were offered a top-level upfront
fee of 20bp.
Separately, in early July, the borrower
raised a Rmb3bn (US$436m) three-year loan
from 10 lenders. Mizuho Bank (China) was
the MLAB of that transaction, which offers an
interest margin of 110% of the one to five-year
PBoC rate, currently at 4.75%. Lenders were
offered a top-level upfront fee of 25bp.
For full allocations, see http://www.ifrasia.com.
WAKAKO SATO, APPLE LAM, EVELYNN LIN