IFR 02.29.2020

International Financing Review February 29 2020 57

LOANS ASIA-PACIFIC

Proceeds from the latest loan are for

RElNANCINGûTHEûOUTSTANDINGûAMOUNTûOFûAû

HK$6.68bn three-year club loan signed in

March 2017.

SHENWAN HONGYUAN SEEKS DEBUT

(ONGû+ONG

LISTEDûlNANCIALûSERVICESûlRMû

SHENWAN HONGYUAN (HK) is making its loan

market debut with a HK$3bn-equivalent

(US$385m) one-year bridge loan.

Shanghai Pudong Development Bank Hong

Kong branch is the sole mandated lead

arranger and bookrunner of the transaction,

WHICHûCOMESûWITHûANûUNSPECIlEDûGREENSHOEû

option.

Proceeds will be for general corporate

purposes.

Shenzhen-listed parent Shenwan

Hongyuan Securities is providing a letter of

comfort for the facility.

The loan, to be available in Hong Kong

and US dollars, offers an interest margin of

110bp over Hibor/Libor.

Lenders joining on or before March 26

will earn a 5bp early-bird fee.

MLABs joining with tickets of HK$500m-

equivalent or above will receive top-level

all-in pricing of 155bp, based on a 40bp

upfront fee and the early-bird fee.

MLAs taking HK$300m–$499m earn

145bp all-in via a 30bp upfront fee, while

lead arrangers with HK$150m–$299m are

offered 130bp all-in based on a 15bp fee.

4HEûBORROWERûISûTHEûmAGSHIPûCOMPANYûOFû

Shenwan Hongyuan Group, which counts

state-owned investment company Central

Huijin Investment as a controlling

shareholder.

INDIA

RELIANCE MANDATES 16

Conglomerate RELIANCE INDUSTRIES has

mandated 16 banks on a U$1.45bn dual-

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syndicated loan markets in less than a year.

The borrowing, which will be pre-funded,

includes a US$350m-equivalent yen-

denominated portion. The US dollar and yen

TRANCHESûCARRYûTENORSûOFûûANDûlVEûYEARSû

respectively.

Banks mandated on the US dollar piece

are ANZ, Bank of America, Barclays, BNP Paribas,

Citigroup, DBS Bank, First Abu Dhabi Bank,

HSBC, Scotiabank, Standard Chartered Bank,

State Bank of India and United Overseas Bank.

Credit Agricole CIB, Mizuho Bank, MUFG and

SMBC are mandated on the yen tranche.

About US$1.1bn of the new loan will

RElNANCEûTWOûEXISTINGûFACILITIESûnûAû

US$550m 3.5-year club loan signed in

January 2017 and a US$550m syndicated

TRANCHEûOFûAûLARGERû53BNûlNANCINGû

completed in March that year.

The club loan comes due in July this year,

while the syndicated facility matures on

April 27. The latter offered a top level all-in

of 106bp based on an interest margin of

83.5bp over Libor and an average life of 3.02

years.

Ten banks committed to the club loan,

while a total of 26 lenders participated in

the US$550m syndicated portion of the

March 2017 borrowing.

Last June, RIL closed a US$1.5bn-

equivalent portion of a broader US$2.25bn

JUMBOûlNANCINGûWITHûûLENDERSûJOININGûINû

general syndication. A US$750m piece for

Reliance Jio Infocomm was not launched

into general syndication.

The US$1.5bn portion comprised two

facilities – Facility 1 had a US$650m tranche

and a ¥38.85bn (US$350m) piece, while

Facility 2 had a US$350m portion and

¥16.65bn tranche.

The US dollar and yen tranches of Facility

1 paid top-level all-in pricing of 128.5bp and

88.5bp based on margins of 106bp over

Libor or 72.5bp over yen Libor, respectively,

and an average life of 5.25 years.

Facility 2 offered top-level all-in pricing of

131bp and 91.5bp for the US dollar and yen

tranches, respectively, based on margins of

108bp over Libor or 75.5bp over yen Libor

and an average life of 5.5 years.

HPCL PICKS THREE

HINDUSTAN PETROLEUM CORP has picked three

BANKSûFORûAûlVE

YEARûlNANCINGûOFûUPûTOû

US$500m.

Bank of Baroda, State Bank of India and SMBC

are expected to be mandated on the deal,

which has a base size of US$300m and a

greenshoe option of US$200m.

4HEûSTATE

OWNEDûRElNERûHADûSENTûOUTûAû

REQUESTûFORûPROPOSALSûINû*ANUARYûFORûAûlVE

YEARûlNANCINGûRETURNINGûTOûTHEûOFFSHOREû

loan markets after 18 months.

0ROCEEDSûFROMûTHEûNEWûMONEYûlNANCINGû

will be used for general corporate purposes.

HPCL closed a US$300m three-year bullet

loan in June 2018 as a four-bank club. That

loan pays an interest margin of 60bp–65bp

over Libor.

CAIRN INDIA DRAWS TWO

CAIRN INDIA HOLDINGS has closed syndication of

ITSû53MûlVE

YEARûAMORTISINGûLOANûWITHû

two banks joining, while more

commitments are being sought through an

accordion.

Union Bank of India joined with a big-ticket

commitment of US$100m, while Taishin

International Bank is the other bank

participating.

Axis Bank, Citigroup and ICICI Bank were the

original mandated lead arrangers and

bookrunners of the loan, which was

launched in mid-October with a base size of

US$500m and an accordion of up to

US$250m.

3IGNINGûWITHûTHEûlVEûBANKSûWASûEXPECTEDû

to take place late last week.

A few more banks could still join via the

accordion.

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subsidiary of Indian mining conglomerate

Vedanta pays a top-level all-in of 279.3bp based

on an interest margin of 265.5bp over Libor and

a remaining average life of 3.63 years assuming

participating lenders were transferred into the

facility by November 29 last year.

Cairn India’s previous loan was a

53MûMULTI

TRANCHEûlNANCINGû

completed in October 2017, which offered a

blended top-level all-in pricing of 233.4bp

based on a blended margin of 205bp and a

blended remaining average life of 3.17 years.

INDONESIA

FREEPORT MANDATES NINE

FREEPORT INDONESIA has mandated nine

LENDERSûANDûlRMEDûUPûTHEûSIZEûOFûAûlVE

YEARû

loan at US$2.8bn.

The mandated banks are Bank Mandiri,

Bank Rakyat Indonesia, BNP Paribas, Citigroup,

HSBC, Maybank, Mizuho Bank, Standard

Chartered and SMBC.

The banks have equally underwritten the

lNANCING

Freeport Indonesia, operator of Grasberg,

the world’s second-biggest copper mine, has

NOTûlRMEDûAûTARGETûLAUNCHûDATEûINTOûGENERALû

syndication given the uncertain market

environment amid the coronavirus outbreak.

Bank Negara Indonesia, MUFG and Societe

Generale were part of an initial working

group that was formed in November, but fell

away recently.

0ROCEEDSûWILLûlNANCEûTHEûCONSTRUCTIONûOFû

a new copper smelter in Gresik, East Java,

which is expected to begin in August.

The Indonesian government, via state-

owned Mining Industry Indonesia, became

the majority owner of Freeport Indonesia

after increasing its share ownership to

51.23% from 9.36% through a US$3.85bn

deal in December 2018.

US-based Freeport-McMoran owns 48.8%

of Freeport Indonesia.

SMI ENDS FOUR-YEAR HIATUS

SARANA MULTI INFRASTRUKTUR has approached

LENDERSûFORûAûlVE

YEARûTERMûlNANCINGûOFûUPû

to US$500m, returning for its largest

syndicated loan after a four-year hiatus.

9 IFR Loans 2322 p 55 - 72 .indd 57 28 / 02 / 2020 18 : 11 : 31