28 International Financing Review Asia November 25 2017Books will open on Monday and Tuesday.
The securities will be issued against
small loans, ranging from Rmb1000 to
Rmb300,000, to individual consumers from
Chongqing Anti Shangcheng Small Loan, a
unit of Alibaba-backed Ant Financial.
China Construction Bank is lead underwriter
and bookrunner on the offering, with
Everbright Securities as joint lead underwriter.
The securities, when issued, will
mark Alibaba’s first securitisation in the
interbank bond market after a number of
private placements of similar notes in the
stock exchange market.SYNDICATED LOANS
› ZHEJIANG ENERGY SIGNS MAIDENZHEJIANG ENERGY INTERNATIONAL has signed a
maiden three-year term loan of US$300m
with nine banks.
ANZ, DBS Bank and Standard Chartered
(Hong Kong) were mandated lead arrangers,
bookrunners and underwriters on the loan.
StanChart was also the facility agent.
The loan offered a top-level all-in pricing
of 100bp, based on an interest margin of
80bp over Libor and a 60bp upfront fee.The borrower’s parent, Zhejiang
Provincial Energy Group, provided a
keepwell agreement.
Funds will be used to refinance a similar-
sized bond.
For full allocations, see http://www.ifrasia.com.› METALS DUO RAISES ONSHORE FUNDSChina’s DONGYING FANGYUAN NONFERROUS METALS
and DONGYING LUFANG METALS MATERIAL have
raised an onshore two-year pre-export
financing of US$120m.
Natixis, the coordinator and mandated
lead arranger, committed US$40m to the
club loan, while Korea Development Bank
(US$30m), OCBC Bank (US$30m) and Maybank
(US$20m) were also MLAs. Signing took
place was on November 8.
The all-in pricing is in the mid-to-high 300s.
The borrowers have an offtake
agreement with Glencore, for which the
underlying product is copper.
The two borrowers obtained a US$360m
one-year offshore pre-payment facility in
August last year with Deutsche Bank and
ING Bank as the MLAs and bookrunners.
That loan offered a top-level all-in pricing of
330bp, based on an interest margin of 235bp
over Libor and a 0.79-year average life.› HOME CREDIT MAKING PRC DEBUTHOME CREDIT CONSUMER FINANCE, a wholly owned
unit of the Netherlands’ Home Credit, has
launched its maiden Rmb700m (US$106m)
one-year bullet financing in China’s
onshore loan market.
The unsecured facility comes with a
Rmb700m greenshoe option.
BNP Paribas and HSBC are mandated lead
arrangers and bookrunners. HSBC is also
facility agent.
The loan offers an interest margin of
130% of the PBoC rate, which is at 4.35% for
the one-year tenor.
MLAs with Rmb140m or more earn
a participation fee of 55bp, while lead
arrangers with Rmb100m-Rmb139m
receive a 45bp fee, and arrangers with
Rmb50m-Rmb99m get a 35bp fee.
Those committing on or before December
15 will also earn an early-bird fee of 10bp.
The deadline for commitments is January 5.
There is also a 25bp commitment fee.
The borrower, set up in 2010 in Tianjin,
is one of China’s first four consumer
finance companies to get licences from the
China Banking Regulatory Commission.
Dutch parent Home Credit is a frequent
borrower in the loan market. It signed
an increased €650m (US$743m) two-year
term loan in June. HSBC was the global
coordinator, with ING Bank as the facility
agent. The duo and ICBC, Komercni Banka
and Societe Generale were the MLABs. That
loan pays a margin of 400bp over Euribor
and a top-level upfront fee of 100bp.
Meanwhile, Home Credit Vietnam Finance,
another wholly owned unit, is raising a three-
year facility of US$50m–$80m, following
on the heels of a US$37.5m three-year loan
wrapped up in October. The latter loan pays a
margin of 460bp over Libor.
Their ultimate parent is PPF Group, a
financial conglomerate headquartered in the
Netherlands, with businesses that include
consumer financing, insurance, banking and
real estate. Its reach spans from Europe to
Russia, the US and across Asia.EQUITY CAPITAL MARKETS
› CHINA EDUCATION SEEKS IPO APPROVALCHINA EDUCATION GROUP sought approval from
the Stock Exchange of Hong Kong last
Thursday for an IPO of about US$450m,
according to two people close to the move.
If the company gets the regulatory
approval, it will start premarketing the IPO
this week, with BNP Paribas as sole sponsor.
The provider of higher education services
operates two private learning institutions- Jiangxi University of Technology and
CNC takeout group forms
Loans Existing lenders commit to jumbo borrowing, others still processingAn underwriting group is being formed for
CHINA NATIONAL CHEMICAL’s US$5.5bn loan to
take out a US$12.7bn bridge financing for
its takeover of Swiss seeds and pesticides
company SYNGENTA.
Some existing lenders on the bridge loan,
including Banco Santander, BNP Paribas,
China CITIC Bank International, Credit Agricole
CIB, Credit Suisse, Natixis, Rabobank and
Societe Generale, have received internal
approvals to underwrite the takeout, while
others, including Chinese banks, are still
processing the same.
ChemChina has asked each lender for an
underwriting commitment of US$500m and a
final hold of US$275m. The original deadline
for commitments was on Monday.
The US$5.5bn facility is split into a three-
year tranche A and a five-year tranche B.
The interest margins will be adjusted based
on ChemChina’s long-term credit ratings of
Baa2/BBB/BBB (Moody’s/S&P/Fitch). The
current margins will be 153bp and 195bp over
Libor with upfront fees of 141bp and 175bp for
tranches A and B, respectively.
The US$12.7bn bridge loan pays anopening margin of 200bp over Libor, based
on a one-year tenor and ChemChina’s ratings
of Baa2/BBB (Moody’s/S&P) or higher.
ChemChina repaid part of the bridge loan
in July with proceeds from US$3bn of bonds
raised earlier, reducing the outstanding to
US$8.94bn.
The US$12.7bn facility complemented a
US$20.2bn non-recourse bridge loan at the
Syngenta level, which was reduced to about
US$7.01bn.
In addition to the two bridge loans,
ChemChina raised another US$20bn mainly
in perpetual bonds to back the purchase.
Separately, Syngenta last month said
it still planned to come back to the bond
market in the coming months after pulling
a US$7bn bond as it struggled to drum up
interest for the deal in the face of a raft
of lawsuits connected to its genetically
modified corn. Proceeds from the bonds
were to refinance the acquisition bridge
loans.
ChemChina’s SFr43bn (US$43bn)
acquisition of Syngenta won approval in May.
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