Bank of China (Hong Kong) and Bank of
Communications Hong Kong branch were the
lenders on the club facility. The two banks
are considering syndicating the deal,
according to sources.
ND Paper US, a wholly owned subsidiary of
Nine Dragons Paper Holdings, is the borrower
while the listed company and Nine Dragons
Paper (BVI) Group are the guarantors.
Ownership covenants require
chairwoman Cheung Yan and her family
to own at least 51% of Nine Dragons Paper
Holdings and maintain management
control over the recycled paper and
cardboard producer.
According to LPC data, BOC and
Industrial & Commercial Bank of China in
March provided a Rmb523m (US$76.2m)
one-year loan for Nine Dragons Worldwide
(China) Investment Group, another wholly
owned subsidiary. The deal was guaranteed
by Nine Dragons Paper Holdings and paid a
fixed interest rate of 4.3%.
In July 2016, Nine Dragons also raised
a US$168m seven-year loan to fund the
expansion of a paper plant in Vietnam.
Cheng Yang Paper Mill was the borrower
while Nine Dragons Paper Holdings
provided a guarantee. Original mandated
lead arranger and bookrunner BOC Ho
Chi Minh branch brought in three other
branches of BOC and four other banks.
› SF MANDATES SIX FOR HK$5BN TAKEOUTExpress delivery service SF HOLDING has
mandated six banks for a HK$5bn five-year
loan to take out a bridge facility that backed
the purchase of the Greater China supply
chain operations of Deutsche Post.
ANZ, Credit Agricole CIB, Credit Suisse,
HSBC, MUFG and Standard Chartered are the
mandated lead arrangers and bookrunners
of the loan, which is expected to offer an
interest margin of about 110bp over Hibor.
In February, Shenzhen-listed SF Holding
completed the Rmb5.5bn acquisition of
Deutsche Post DHL Group’s Greater China
supply chain operations. SF Holding will pay
DPDHL partnership fees for the next 10 years
for the trademark licence, customer referrals,
employee training and other support services.
The target business is now branded as SF
DHL Supply Chain China with headquarters
in Shanghai.
Rated A3/A-/A-, SF Holding owns China’s
largest private delivery courier company, SF
Express.› BEIJING ENTERPRISES UNIT GOES GREENChinese state-owned BEIJING ENTERPRISES CLEAN
ENERGY GROUP has launched a HK$3bn three-
year term loan, which will partially be used to
support payments for clean energy projects.DBS Bank and Standard Chartered Bank are
the mandated lead arrangers, bookrunners
and underwriters of the deal, which offers
an interest margin of 155bp over Hibor and
has a 2.85-year average life.
Banks are being invited to join with
commitments of HK$400m or above for the
mandated lead arranger and bookrunner
title and a top-level all-in pricing of 192bp
via a 105.45bp fee, tickets of HK$250m-
HK$390m for the MLA title and an all-in
of 185bp via a 85.5bp fee, and tickets of
HK$100m-HK$240m for the lead arranger
title and an all-in of 180bp via a 71.25bp fee.
Commitments are due by July 31.
Hong Kong-listed Beijing Enterprises
Water Group, a majority shareholder of the
borrower, is providing a letter of comfort.
Proceeds will also be used for general
corporate purposes and refinancing.
Beijing Enterprises Clean Energy previously
obtained a HK$1.78bn three-year loan from
10 banks in September 2017. That facility
offered a top-level all-in pricing of 202.6bp
based on a margin of 170bp over Hibor.
Listed in Hong Kong, Beijing Enterprises
Clean Energy Group is a producer and
distributor of renewable energy. Beijing
Enterprises Group, which is owned by
Beijing’s municipal government, is the
borrower and Beijing Enterprises Water
Group’s ultimate parent.ARE YOUR COLLEAGUES AS
WELL-INFORMED AS YOU?
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