IFR Asia – February 10, 2018

32 International Financing Review Asia February 10 2018

Moody’s said the W450bn ($416.4m)

purchase would increase parent DGB

Financial Group’s debts, raising the

possibility that key subsidiary Daegu Bank

might need to service the debt.

TAIWAN

DEBT CAPITAL MARKETS

› ASIAN ISSUERS PRINT FORMOSAS

The Taiwan Formosa bond market

continued to provide ample fundraising

opportunities for Asian issuers in the first

five weeks of the year.

DBS BANK sold US$250m 30-year zero-

coupon bonds non-callable for the first

five years. The notes, which can be called

annually thereafter, pay an internal rate of

return of 4.02%.

SinoPac Securities and Yuanta Securities were

leads on the trade.

EXPORT-IMPORT BANK OF KOREA, rated Aa2/AA/

AA–, visited the Taiwan market twice to raise

renminbi. It priced a Rmb300m (US$48m)

six-year issue at par to yield 4.69% and a

Rmb270m three-year trade priced at par to

yield 4.66%. Deutsche Bank handled both trades.

BANK OF TOKYO-MITSUBISHI UFJ sold US$150m

of 30-year zero-coupon notes, callable in

January 2023 and every third anniversary

thereafter. The notes, rated A1/A (Moody’s/

S&P), pay an IRR of 4.10%.

MasterLink Securities and E Sun Commercial

Bank were underwriters.

SYNDICATED LOANS

› SMBC AVIATION LAUNCHES LOAN

Aircraft-leasing company SMBC AVIATION

CAPITAL has launched a five-year borrowing

of US$600m, split into a US$200m term

loan and a US$400m revolving credit.

ANZ, Apple Bank for Savings, Bank of China,

Singapore branch, Cathay United Bank,

Citigroup, Maybank, OCBC Bank and Westpac,

Singapore branch, are mandated lead

arrangers and bookrunners on the unsecured

facility. Citigroup is the global coordinator.

The respective interest margins for the

term loan and revolver are 97bp and 102bp

over Libor.

Based on a blended average life of 4.67

years, banks can join on a pro-rata basis for

a top-level all-in of 112.1bp and the lead

manager title, through a 55bp management

fee, for US$20m or more. A bank meeting

will be held in Taipei on February 7.

Commitments are due on March 2.

SMBC Aviation Capital Netherlands is

the borrower, while Ireland-based SMBC

Aviation Capital is guarantor. Funds will be

used for general corporate purposes.

In August 2015, SMBC Aviation Capital

raised a US$600m four-year club loan from

Citigroup, Credit Agricole, Goldman Sachs,

Royal Bank of Canada and JP Morgan.

SMBC Aviation Capital, rated A–/BBB+

(Fitch/S&P), is the fourth-largest aircraft lessor

worldwide with 255 owned, 197 managed

and 214 committed aircraft as of September

30 2017. Sumitomo Mitsui Financial Group

controls 66% of SMBC Aviation Capital, while

Sumitomo Corp owns 34%.

› TPK SEEKS LOAN OF UP TO US$200M

TPK HOLDING has launched a three-year

refinancing loan of up to US$200m through

mandated lead arranger and bookrunner

Mega International Commercial Bank.

The touch-panel maker’s facility carries

an interest margin of 120bp over Libor. The

borrower will pay any excess interest rate

beyond a 40bp difference between TAIFX

and Libor.

Banks can join as MLAs with US$25m or

more for an upfront fee of 25bp, or as lead

arrangers with US$20m–$24m for a 20bp

THE 21

ST

ANNUAL

IFR ASIA

AWARDS

DINNER

TUESDAY 27TH FEBRUARY 2018

FOUR SEASONS HOTEL, HONG KONG

AWARDS FOR EXCELLENCE

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