58 International Financing Review February 29 2020Banks are processing the borrower’s request
for proposals that was sent out in December.
A mandate is expected to be awarded
around early March.
4HEûlNANCINGûCARRIESûANûUNSPECIlEDû
greenshoe.
SMI’s last loan market visit in June 2016
was a blockbuster, with 29 banks joining its
53Mû
YEARûRElNANCINGûINûGENERALû
syndication.
Standard Chartered was the sole mandated
lead arranger and bookrunner of the
transaction, which offered top level all-in pricing
of 138.2bp based on an interest margin of 110bp
over Libor and a remaining life of 1.33 years.
The government-owned borrower,
established in 2009 to boost infrastructure
development projects, is rated BBB (Fitch).JAPAN
MARUBENI RENEWSTrading house MARUBENI has rolled over a
US$555m 364-day revolving credit facility
without any change in pricing on its
previous borrowing completed a year ago.The new facility pays all-in pricing of 60bp
based on an interest margin of 50bp over
yen Libor and a facility fee of 10bp.
Citigroup was the original mandated lead
arranger and Credit Agricole CIB joined to
share the MLA title.
All the existing lenders, including ANZ,
Bank of America, BNP Paribas, Deutsche Bank,
HSBC, ING Bank, JP Morgan, Societe Generale and
Standard Chartered, renewed their
commitments.
Marubeni is rated Baa2/BBB/A/A (Moody’s/
S&P/JCR/R&I).NCD RETURNS WITH ¥20bn DEALNIPPON COMMERCIAL DEVELOPMENT has closed a
¥20.3bn (US$184m) one-year loan, returning
slightly over a year after its debut.
SMBC was the arranger, while 77 Bank,
Aeon Bank, Awa Bank, Fukuho Bank, Higo Bank,
Hyakugo Bank, Juroku Bank, Kagawa Bank, Keiyo
Bank, Kochi Bank and Nishi-Nippon City Bank
joined in syndication.
Funds are for general corporate purposes.
In December 2018, the real estate
company raised a ¥20bn one-year debut
syndicated loan.DAIO PLANS LOANS FOR BRAZIL BUY
DAIO PAPER is considering long-term loans as
WELLûASûHYBRIDûlNANCINGûTOûBACKûITSûPLANNEDû
R$2.3bn (US$570m) acquisition of a Brazilian
sanitary goods maker.
Daio Paper will initially fund the
acquisition of Sanither-Fabrica de Papel
Santa Therezinha with cash on hand.
Daio and Marubeni have agreed to buy all
shares of Sanither via their 51:49 Brazilian
joint venture.
Marubeni is also mulling various options
TOûlNANCEûITSûPARTûOFûTHEûCONSIDERATION û
including cash on hand.HULIC REIT TO REFINANCEHULIC REIT has agreed a ¥16.815n bullet term
LOANûFORûRElNANCING
MUFG, Mizuho Bank and SMBC are the
mandated lead arrangers of the loan, which
ISûSPLITûINTOûlVEûTRANCHESûWITHûTENORSû
ranging from 4.5 to 7.5 years and margins
ranging from 20bp to 37bp over three-
month Tibor.
77 Bank, Mitsui Sumitomo Insurance, Mizuho
Trust & Banking, Nishi-Nippon City Bank,CIP closes Taiwan’s largest wind farm PF
TAIWAN Sponsor wraps up NT$90bn debt packageDanish infrastructure fund management
company COPENHAGEN INFRASTRUCTURE PARTNERS
has closed a jumbo multi-tranche project
financing at around NT$90bn (US$2.96bn) in
what is the largest debt package for Taiwan’s
booming offshore wind market.
The financing consists of a NT$80bn-plus
18-year PF, a term loan of about US$230m and a
performance bond facility for the remaining amount.
A group of 21 international and Taiwanese
lenders, and six export credit agencies are
providing the debt.
Unusually, one of CIP’s funds, Copenhagen
Infrastructure II (CI II), is also participating as a
lender on the PF, as are other sponsors Taiwan
Life Insurance and TransGlobe Life Insurance.
MUFG acted as financial adviser and CTBC as
the local financial adviser for the project debt.
Of the 19 other lenders participating, only four
were Taiwanese – E. Sun Commercial Bank, EnTie
Commercial Bank, KGI Bank and Taipei Fubon
Commercial Bank.
The other lenders include ABN AMRO,
Banco Santander, Credit Agricole CIB, DBS Bank
(Taiwan), DBS Bank Taipei branch, Deutsche
Bank, HSBC, JP Morgan, KfW IPEX-Bank, Korea
Development Bank, Mizuho Bank, Natixis,
Oversea-Chinese Banking Corp, Societe Generale,
Standard Chartered and SMBC.The NT$80bn-plus 18-year project financing
is further split into an export credit agency
portion and a commercial piece.
Insurance cover for the ECA tranche is from
Atradius of the Netherlands, EKF of Denmark,
GIEK of Norway, K-Sure of South Korea, NEXI of
Japan, and UK Export Finance.
The ECA tranche offers interest margins ranging
from 105bp to 115bp over Taibor during the
construction period, before stepping down to 75bp
to 85bp during the first five years of operations.
From the sixth year of operations until maturity, the
margins will range from 85bp to 95bp.
The commercial tranche offers a margin of
240bp during the construction period, before
stepping down to 210bp during the first five years
of operations. From the sixth year of operations
until maturity, the margin will step up to 230bp.
Banks were offered top-level upfront fees of
110bp and 165bp for the ECA and commercial
tranches, respectively.
Funds are for the development of the 589MW
Changfang and Xidao project located off the
coast of Changhua county.
In February last year, the project entered
into a 20-year power purchase agreement with
state-owned Taiwan Power. The project will
use 62 wind turbine generators from Danish
manufacturer MHI Vestas Offshore Wind.Commissioning for a first phase of up to 100MW
is scheduled for the end of 2021, with a second
500MW phase slated to commence in 2024.
In April 2018, Taiwan’s Ministry of Economic
Affairs awarded CIP a contract for two projects
with a combined capacity of 900MW, including
600MW for wind farms in Changfang and Xidao,
and 300MW for Site 29, all located off the coast
of Changhua county.
CIP will develop Site 29 with partners China
Steel and Diamond Generating Asia.
CIP has majority ownership of the project
through its funds CI II and CI III. Taiwan Life
Insurance, a wholly owned subsidiary of CTBC
Financial Holding, and TransGlobe Life Insurance
hold minority stakes.
Separately, Danish wind energy developer Orsted
is in the market for a NT$61.9bn 18-year project
financing for its offshore wind farms in Changhua.
CTBC Bank and HSBC are the financial
advisers of the borrowing, which is likely to
comprise a NT$29.3bn commercial tranche, a
NT$29.3bn ECA-backed portion, a NT$2.6bn
ancillary facility, and a NT$700m pre-
completion revenue facility.
These projects are also part of Taiwan’s
target to install 15.5GW of offshore wind power
capacity by 2035.
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