rate floor set at 1.7%, after the project is
pledged.
The interest margin on the US dollar
portion is 110bp and 100bp over Libor
before and after the pledge, respectively.
The borrower will pay any excess interest
rate beyond a 35bp difference between
TAIFX and Libor.
Banks were offered a top-level upfront
fee of 20bp. The plant, machinery and
equipment form the security package.
The maker of petrochemical products,
set up in 2015, is a joint venture between
Japan’s KH Neochem, petroleum company
CPC Corp Taiwan and Mega International
Commercial Bank. CPC and KH Neochem
are providing a letter of comfort. CPC and
KH Neochem each hold a 47% stake, while
Mega owns the remainder.
› MACRONIX SOUNDS OUT FOR REFI
MACRONIX INTERNATIONAL is sounding out the
market for a refinancing loan of about
NT$7bn.
The memory-chip maker is in
preliminary talks with relationship banks
about the facility, and terms are still being
finalised.
It last tapped the market for a NT$7.65bn
three-year loan in June 2015. Bank of Taiwan,
Chang Hwa Commercial Bank, Land Bank
of Taiwan, Mega International Commercial
Bank and Taiwan Cooperative Bank were the
mandated lead arrangers and bookrunners on
that loan, which offered an interest margin of
between 100bp and 150bp over three-month
Taibor, based on the borrower’s pre-tax net
profit margin.
› CHUNGHWA PT LAUNCHES REFI
A five-bank group has launched a NT$6bn
five-year refinancing loan for CHUNGHWA
PICTURE TUBES.
Bank of Taiwan , Chang Hwa Commercial
Bank , Land Bank of Taiwan , Taiwan Business
Bank and Taiwan Cooperative Bank are the
mandated lead arrangers and bookrunners.
BoT is the facility agent.
The facility pays an interest margin
ranging from 135bp to 170bp over the one-
year post office savings rate, with an after-
tax interest rate floor set at 2.4%
Banks are invited to join as lead
arrangers with NT$1bn or more for an
upfront fee of 42bp, as co-arrangers
with NT$800m–$999m for a 33bp fee, as
managers with NT$500m–$799m for a
20bp fee, or as participants with NT$200m–
$499m for a 6bp fee. The deadline for
responses is November 10.
The borrower’s factory serves as security,
while the borrower’s chairman is the
guarantor.
In March 2016, the borrower extended
the maturity on its NT$22.8bn dual-tranche
loan for four more years until May 2019.
It first signed the loan in May 2010 with a
five-year tenor and then extended it in 2014
for a further 18 months.
BoT led the 2010 facility, comprising a
NT$22.5bn amortising term loan tranche
A and a NT$300m commercial paper
guarantee tranche B. The interest margin
on tranche A ranged from 100bp to 150bp
over Taibir01, with an after-tax interest
rate floor of 2.5%, while tranche B offered a
guarantee fee of 100bp.› CSS DEBUTS FOR NT$4.3BNCHIEN SHUN STEEL has launched a maiden
NT$4.3bn-equivalent five-year loan, with
First Commercial Bank as mandated lead
arranger and bookrunner.
The loan is split into a NT$2.8bn tranche
A, a US$60m tranche B, a NT$1.8bn
tranche C and a US$30m tranche D. The
four tranches cannot exceed a combined
NT$4.3bn.
The interest margin on tranches A and C
is 100bp over Taibor, with a pre-tax interest
rate floor set at 1.7%, while tranches B and
D pay a margin of 110bp over Libor. The
borrower will pay any excess interest rate
beyond a 35bp difference between TAIFX
and Libor.
Banks can join as MLAs with NT$860m
or more for an upfront fee of 18bp, as co-
arrangers with NT$645m–$859m for a 12bp
fee, or as managers with NT$430m–$644m
for a 5bp fee. The response deadline is
October 22.
Funds are for capital expenditure
purposes.
The borrower’s land, factory and
machinery serve as security, while the
borrower’s chairman is the guarantor.› FINA INCREASES LOAN SIZEFINA FINANCE & TRADING has increased a three-
year financing to NT$3.6bn from the
NT$3bn target after attracting 12 banks in
general syndication.
Land Bank of Taiwan was the mandated
lead arranger and bookrunner of the
transaction, which comprises a NT$1.8bn
revolving credit tranche A and a NT$1.8bn
guarantee tranche B.
Tranche A pays an interest margin of
85bp over Taibor, with a pre-tax interest
rate floor set at 1.7%, while tranche B offers
an annual guarantee fee of 70bp.
Banks were offered a top-level upfront
fee of 10bp. Signing was on Friday.
Funds are to refinance a NT$2.4bn three-
year facility signed in March 2014 and for
working capital purposes.The borrower, a subsidiary of Chailease
Finance, provides financing services to
small and medium-sized companies in the
construction and transport sectors.
For full allocations, see http://www.ifrasia.com.THAILAND
DEBT CAPITAL MARKETS
› NAM NGUM 2 FINDS DEMANDLaotian power producer NAM NGUM 2 last
Thursday priced triple-tranche baht bonds
in the middle of guidance ranges to healthy
demand.
The Bt6bn (US$180m) offering was
covered 3x as investors vied for the issuer’s
first bonds in Thailand.
A Bt1bn three-year tranche will pay
2.59%, a Bt1.4bn seven-year will pay 3.48%
and a Bt3.6bn 10-year tranche will pay
3.69%. Respective pricing guidance ranges
were 2.49%–2.63%, 3.40%–3.54% and 3.63%–
3.77%.
Proceeds will be used to refinance part
of project loans used to build a 615MW
hydropower plant in Laos. The plant was
built at a cost of Bt31bn, mainly through
bank loans, which were refinanced last year
with about Bt15bn-equivalent of facilities.
A key attraction of the bond was
its major shareholders – leading Thai
construction company Ch Karnchang,
Thai state-backed Ratchaburi Electricity
Generating Holding and Laotian state-
owned EDL-Generation. Tris rates the bonds
A–.
Settlement will be on Thursday.
Bangkok Bank , Krungthai Bank and Siam
Commercial Bank were joint lead managers
and underwriters.› AMATA SELLS TRIPLE-TRANCHERAMATA CORP sold Bt5bn of bonds last
Wednesday, pricing three tranches in the
middle to wide ends of guidance ranges.
Pricing on a Bt1bn three-year was fixed
at 2.28%, a Bt2bn five-year at 2.69% and a
Bt2bn seven-year at 3.04%, versus respective
guidance ranges of 2.16%–2.32%, 2.53%–
2.69% and 3.0%–3.16%.
The Thai developer and manager of
integrated industrial cities increased the
issue size from a minimum of Bt4bn.
A three-day subscription begins on
Monday with settlement due on Thursday.
Bangkok Bank and Krung Thai Bank were
joint lead managers on the issue, which
Tris rates A.