IFR Asia – November 25, 2017

40 International Financing Review Asia November 25 2017

These are the Malaysian engineering and

construction company’s first bonds since

April last year, when it sold M$300m of

five-year sukuk notes at 4.62%.

The issue settled last Thursday.

PHILIPPINES

DEBT CAPITAL MARKETS

› UBP ISSUE PULLS IN MASSIVE ORDERS

UNION BANK OF THE PHILIPPINES priced US$400m

of five-year bonds at Treasuries plus

127.5bp, as orders hit US$3.2bn through

joint bookrunners Citigroup and Standard

Chartered.

Final pricing on the Reg S issue was

tightened aggressively from the initial

Treasuries plus 160bp area.

Asia was allocated 84% and the rest went

to EMEA.

In terms of investor types, 75% of the

bonds went to funds 10% were private

banks, 8% were banks and the rest were

insurers, sovereigns and others.

The bonds are expected to have a Baa2

Moody’s rating, in line with the issuer, and

will be drawn down from a US$1bn MTN

programme.

On Friday, UBP tapped the same bonds

for US$100m, selling the additional notes

at par, and increasing the outstanding

size to US$500m. Proceeds will be used

to refinance existing liabilities, expand

its funding base and for other general

corporate purposes.

Settlement is on November 29, the same

date as the initial issue. Citigroup and

StanChart also handled the tap.

› VISTA RAISES US$350M FOR TENDER

VISTA LAND & LIFESCAPES has priced US$350m

seven-year non-call four notes at 5.75%,

with proceeds to be used to fund a tender

offer of outstanding notes.

The Philippine property developer priced

the new bonds well inside initial guidance

of 6.125% area, after receiving orders over

US$1.7bn.

Proceeds from the unrated senior

unsecured notes were used to fund the

tender offer for its 6.75% 2018s and 7.45%

2019s, as well as to refinance existing debt

and to meet general corporate needs.

Vista accepted US$4.55m of its

US$51.8m 2018s and US$75.797m of

its US$180.8m 2019s under the offer.

It paid US$1,038.63 per US$1,000 of

principal amount for its 6.75% 2018s and

US$1,072.41 per US$1,000 for its 7.45%

2019s. The prices were equivalent to 50bp

over the secondary Treasury spread of the

two bonds.

The Philippine developer allocated 87% of

the new notes to Asia and the rest to EMEA.

In terms of investor types, 72% were funds

and asset managers, 16% were banks and

12% were private banks and others.

VLL International is issuing the notes,

which will come off its US$1bn EMTN

programme. Vista Land is guarantor,

together with its subsidiaries.

DBS and HSBC were bookrunners of the

new issue and tender offer.

› DEL MONTE LOOKS TO SELL PREF SHARES

DEL MONTE PACIFIC is targeting US$160m from

an offering of preference shares, callable

after five years, at a dividend range of

6.000%–6.625%.

The Philippine fruit and vegetable

producer and packager has appointed BDO

Capital as sole manager on the issue.

If the securities are not called on the fifth

anniversary, the dividend will reset to the

initial spread over the 10-year US Treasury

yield, plus 250bp.

The proceeds, to count as equity for

accounting purposes, will refinance BDO

UNIBANK’s US$154m bridge loan, according

to a filing.

The issue uses up the remainder of a

US$360m shelf registration the Philippines

Securities and Exchange Commission

approved last year.

In March, Del Monte Pacific sold

US$200m of pref shares, having increased

the size from a base of US$150m.

Mercuria increases borrowing to US$1bn

„ Loans Size of financing goes up from US$850m after attracting 18 lenders

Commodity trader Mercuria Energy Group

has increased its latest syndicated loan to

US$1bn from US$850m after 18 lenders

came aboard.

Funds are to refinance and extend a loan

signed last November.

The bookrunning mandated lead arrangers

are ANZ, DBS Bank, Emirates NBD Capital,

Industrial and Commercial Bank of China,

London branch, ING Bank, Singapore branch,

Mitsubishi UFJ Financial Group, Mizuho Bank,

OCBC Bank, Rabobank, Singapore branch,

Societe Generale and SMBC, Singapore

branch.

MERCURIA ENERGY TRADING and MERCURIA

ASIA GROUP HOLDINGS are the names on the

financing, now comprising a US$548.5m

one-year multi-currency revolving credit

facility A, a US$191.5m one-year revolving

credit and swingline facility B and an

amended and extended US$260m

three-year revolving credit facility C. The

US$548.5m facility A has a renminbi portion

of US$210.8m-equivalent.

The guarantor is Mercuria Energy Group,

the ultimate holding company of the two

borrowers.

Facility A pays an interest margin of 70bp

over Libor, while facility B pays 70bp for the

revolver and 110bp for the swingline option.

Banks can commit to facility A in US

dollars only or in US dollars and renminbi.

Those participating in facility B are required

to be able to provide swingline loans.

Lenders were offered 40bp each for a

top-level all-in pricing of 110bp for facilities A

and B (revolver option) and 150bp (swingline

option).

One-on-one meetings were held in the

Middle East on September 27, with bank

presentations following in Shanghai on

September 28 and Singapore the next day.

Funds from facilities A and B refinance

a US$455m (tranche A) and a US$210m

(tranche B) of a US$925m multi-tranche loan,

first signed in November 2016 and increased

by US$25m via an accordion option in early

January. The top-level all-in pricing on tranches

A and B was 120bp, while that on tranche C

was 205bp if fully drawn. The interest margins

are 80bp over Libor or CNH Hibor on tranche

A, 80bp over Libor for a regular loan and 115bp

over Libor for a swingline facility for tranche B,

and 140bp over Libor for tranche C. The loan

had the same borrowers and guarantor as the

latest one.

A US$260m three-year tranche C of the

November 2016 loan is being extended

for one year to November 2020. ING is

coordinating the amendment and extension

exercise.

For full allocations, see http://www.ifrasia.com.

CAROL ZHONG

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