38 International Financing Review Asia April 4 2020Corp and United Overseas Bank were the
mandated lead arrangers and bookrunners
of the facility.
The transaction paid a top-level all-in
pricing of 105.9bp (offshore) or 115.9bp
(onshore) based on interest margins of 90bp
(offshore) or 100bp (onshore) over Libor and
an average life of 4.1 years.› TRANS RETAIL SIGNS US$740M LOANTRANS RETAIL INDONESIA has signed a US$740m-
equivalent five-year dual-currency loan after
attracting 13 lenders in general syndication.
Bank BTPN, BNP Paribas, CTBC Bank, DBS
Bank, Deutsche Bank, First Abu Dhabi Bank,
Maybank, Rabobank, Standard Chartered,
Sumitomo Mitsui Banking Corp and Taishin
International Bank were the mandated lead
arrangers, bookrunners and underwriters of
the deal, which comprises a US$90m term
loan (facility A) and a €593m (US$650m)
portion (facility B).
Facility A was not syndicated. Facility B
pays an initial interest margin of 275bp
over Libor for the first year and has an
average life of four years, assuming lenders
transfer into the loan by April 21.
After 12 months, the margin will be
based on the borrower’s consolidated net
debt to consolidated Ebitda.
Lenders were offered a top-level
all-in pricing of 303.75bp via an initial
participation fee of 90bp and a 25bp second
participation fee.
Proceeds of the loan will be used
for refinancing and general corporate
purposes.
Signing took place last Tuesday.
The borrower’s last loan was a five-
year amortising financing in 2017, which
offered a top-level all-in pricing of 380bp
based on an interest margin of 350bp over
Libor and a four-year average life.
That deal saw participation from 31
banks, including MLABs Bank of China,
BNP, CTBC, Deutsche, Industrial and
Commercial Bank of China, Maybank and
SMBC.
Trans Retail is a unit of Indonesian
conglomerate CT Corp and operates
hypermarkets, supermarkets, and cash-
and-carry stores under the Carrefour and
TRANSmart brands.
For full allocations, see http://www.ifre.com.RESTRUCTURING
› PWC RAISES GARUDA CONCERNSIt is uncertain whether GARUDA INDONESIA can
continue as a going concern, auditor PwC
has warned in a note in the airline’s 2019
financial results.Garuda has a US$500m sukuk due on
June 3, and the government has already
hinted that the airline might need to
restructure its debt. The sukuk was bid
at a cash price of around 46, according to
Refinitiv data.
PwC said that Garuda had accumulated
losses of US$669m and negative working
capital of US$2.1bn as of December 31,
and warned that the coronavirus epidemic
had created uncertainty for global airlines
in early 2020. However, it provided an
unqualified opinion on the 2019 results
and said it had prepared them on the
assumption that Garuda will continue to
operate as a going concern.
Garuda completed its last financial
restructuring in 2011, a process that drew
to a close with an IPO. The Indonesian
government owns a stake of around 60%.JAPAN
DEBT CAPITAL MARKETS
› GPIF EYES BIG SHIFT TO FOREIGN BONDSJapan’s GOVERNMENT PENSION INVESTMENT FUND is
to increase its target allocation to foreign
bonds by 10 percentage points in the
2020-21 fiscal year starting April 1, equal
to an additional US$150bn investment in
overseas fixed income.
The giant asset manager’s new policy
lowers its target allocation to domestic
bonds to 25% of its funds from 35% and
increases the weighting of foreign bonds
to 25% from 15%, in a bid to achieve a real
investment return of 1.7%.
The allocations come with some
flexibility. GPIF can allocate 7% more or less
than its target to domestic bonds and 6% in
foreign bonds. In other words, the fund can
allocate up to 31% of its funds to foreign
bonds.
GPIF had 19% of its vast ¥170trn
(US$1.57trn) portfolio in overseas bonds at
the end of December, meaning it would
need to invest around US$94bn more
to reach its 25% target over the next 12
months, and up to US$188bn to hit the 31%
upper end of the new allocation policy.
Meanwhile GPIF kept its allocations to
domestic and foreign equities unchanged at
25% each.
“The allocation to domestic bonds in
the new policy portfolio has decreased
due to declining interest rates and lower
bond yields in Japan, while the foreign
bond allocation has increased due to the
relatively higher interest rates on theseinstruments,” GPIF said in a statement.
To enhance risk management in its
equity investments, the fund has placed
a new restriction preventing itself from
allocating more than 61% of its portfolio to
domestic and foreign equities combined.SYNDICATED LOANS
› IENOVA OBTAINS LONG-TERM LOANINFRAESTRUCTURA ENERGETICA NOVA, the Mexican
subsidiary of US-based Sempra Energy
Holdings, has obtained a US$100m 15-year
credit facility from the Japan International
Cooperation Agency, according to a stock
exchange filing on March 26.
The transaction marks JICA’s first private
sector investment finance project in Mexico
since 2012.
The facility is also part of the financing
the company closed last November with the
International Finance Corp and the North
American Development Bank.
Proceeds will be used to finance and/
or refinance the construction of solar
generation projects within IEnova’s
portfolio.
In February last year, IEnova increased
a revolving credit facility to US$1.5bn
from US$1.17bn and extended its tenor to
February 2024 from August 2020.
Banco Santander, Bank of America,
BBVA, Citigroup, Mizuho Bank, MUFG,
Scotiabank, Sumitomo Mitsui Banking Corp
were the original lenders of the transaction.
Credit Agricole and JP Morgan were
subsequently added to the syndicate.
IEnova develops, constructs and operates
energy-related infrastructure in Mexico.› COSMO ENERGY TAPS SLL, HYBRIDPetroleum refining company COSMO
ENERGY HOLDINGS has signed two financings
totalling ¥40bn (US$369m), including a
debut sustainability-linked loan and a
subordinated borrowing.
Mizuho Bank was the arranger of a ¥10bn
three-year SLL, while the Japanese mega
bank and its peer MUFG arranged a ¥30bn
33-year hybrid loan for refinancing.
Nineteen Japanese regional banks joined
the SLL in syndication, including Bank of
Kyoto, Bank of Yokohama, Chiba Kogyo
Bank, Daiko Bank, Gunma Bank, Hachijuni
Bank, Hiroshima Bank, Iyo Bank, Kansai
Mirai Bank, Keiyo Bank, Nanto Bank, Shiga
Bank, Toyama Bank, Yamagata Bank,
Yamaguchi Bank and Yamanashi Chuo
Bank.
The SLL’s interest margin steps down
by 1bp each time a wind power plant the
borrower develops goes online, a sourceB&RXQWU\LQGG