International Financing Review Asia February 10 2018 29COUNTRY REPORT MALAYSIAoperated 3,144 restaurants worldwide
last tapped the syndicated loan market
in February 2017 for a ¥30bn three-
year amortising term loan for capital
expenditure.› CRE LOGISTICS RAISES ¥12.37BNCRE LOGISTICS REIT signed a ¥12.37bn bullet
term loan last Monday for property
acquisitions.
The loan comprises a ¥3.68bn four-year
tranche, with an interest margin of 40bp
over three-month Tibor, a ¥3.68bn five-year
tranche, with a margin of 45bp over three-
month Tibor, a ¥3.68bn six-year tranche,
with a margin of 50bp over three-month
Tibor, and a ¥1.33bn one-year tranche, with
a margin of 35bp over one-month Tibor.
SMBC was the mandated lead arranger,
Mizuho Bank and MUFG came in as co-
arrangers, while Development Bank of Japan,
Nishi-Nippon City Bank and Resona Bank joined
as lenders.
Funds, drawn last Wednesday, are to buy
four logistics facilities.
The REIT, which invests solely in
logistics facilities, was listed on the TSE last
Wednesday.EQUITY CAPITAL MARKETS
› SOFTBANK SET TO LIST MOBILE UNITJapanese conglomerate SOFTBANK GROUP has
started preparations to list mobile phone
unit SOFTBANK CORP.SoftBank Group CEO Masayoshi Son
told reporters last week that the company
wanted to list the unit this year.
According to last Wednesday’s press
release from SoftBank Group, the company
is currently accelerating its global
investment activities through the SoftBank
Vision Fund and other vehicles to drive
overall growth.
With the proposed spin-off, the
respective roles and valuations of the
group company and the mobile unit will be
clear, making it possible to communicate
information on the group’s businesses to
the market with greater clarity.
SoftBank Corp will remain a major
consolidated subsidiary of the SoftBank
Group’s telecommunications business, even
after being listed, according to the press
release.
Last month, SoftBank Group was
reportedly planning to list its mobile
phone unit in Tokyo and overseas,
possibly London, to raise as much as ¥2trn
(US$18bn).› GLP J-REIT LAUNCHES FOLLOW-ONGLP J-REIT has launched a global offering
of new investment units to raise up to
¥70.4bn, based on the company’s closing
price of ¥124,800 last Monday, according to
a deal term-sheet.
The base deal comprises 524,804 units,
while there is an over-allotment option
of up to 39,361 units. The over-allotment
option represents 7.5% of the base size.
Half of the offer is being offered tointernational investors, while the other
50% is going to domestic buyers. Of the
domestic tranche, 25% is earmarked for
institutional investors, while the rest is for
retail buyers.
The units are marketed at a discount of
2.0%–4.5% to the market prices. The units
will price on any day between February 14
and February 20.
There is a 90-day lock-up period for the
issuer and a 180-day lock-up spell for GLP
Capital.
Books for the international offering opened
last Thursday and will close on February 13.
The company will use the proceeds
mainly as part payment towards the
purchase of six logistics properties and
the solar panels installed at 13 existing
properties.
Citigroup, Mizuho, Nomura and SMBC Nikko
are the joint global coordinators. The four
banks are also joint bookrunners on the
international offering.MALAYSIA
DEBT CAPITAL MARKETS
› DANAINFRA SELLS M$4BN SUKUKState-owned DANAINFRA NASIONAL sold M$4bn
(US$1.03bn) of Islamic bonds in a multi-
tranche transaction last week through five
joint lead managers.China Eastern adds Japanese debt route
Bonds Chinese carrier to offer unfamiliar structures in yen debutCHINA EASTERN AIRLINES will give Japanese
investors a taste of unfamiliar bond
structures as it makes its yen market debut.
The Chinese state-owned carrier spent
three days briefing investors last week for
a three-pronged offering, including bank
guarantees and standby letters of credit.
One piece will carry a guarantee from
Sumitomo Mitsui Banking Corp, Hong Kong
branch, and have an expected rating of
AA from JCR. SMBC Nikko is a sole global
coordinator and joint bookrunner, while DBJ
Securities is a joint bookrunner.
Two other pieces will have standby letters of
credit from Bank of China, Tokyo branch, and
Industrial Commercial Bank of China, Shanghai
Municipal branch, respectively. Both bonds
have expected ratings of A1 from Moody’s.BoC, Mizuho and SMBC Nikko are joint
global coordinators and joint bookrunners on
the latter two structures, with Daiwa, Morgan
Stanley and Nomura as joint bookrunners.
The issuer is not expected to come quickly
to market after last week’s roadshow, so as
to give some time for Japanese investors to
familiarise themselves with the structures.
Although the proposed features are quite
common in China, they are not in Japan –
especially the SBLC – and investors need to
secure internal approvals first.
“China Eastern Airlines does not have
credit ratings, but can become an investment
target as the standby letter of credit is used
for credit enhancement, but, because this is
a bit different from a guarantee and because
investors didn’t anticipate somethinglike this, they apparently need internal
approvals,” said a banker on the deal.
As the structures are also new to Japanese
bankers, they are not fully certain if the
schemes will be well received. However, at
the same time, they hope that there will be
more yen issuance from Chinese borrowers,
even ones with lower credit ratings, if
Japanese investors become familiar with such
schemes.
CEA filed information on the programme
to the Tokyo Pro-bond market on February 2,
registering to issue up to ¥50bn (US$456m).
The bonds will be marketed under the pot
system, not the traditional retention system,
and are likely to have short maturities. The
pricing date is not set yet.
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