› LOTTE P&D PLANS SUSTAINABILITY BOND
LOTTE PROPERTY & DEVELOPMENT has mandated
Mizuho Securities, Societe Generale and Standard
Chartered as joint global coordinators
and joint bookrunners for a US dollar-
denominated Sustainability bond.
A series of fixed-income investor
meetings in Asia began last Thursday.
The Reg S senior unsecured notes have
an unconditional and irrevocable guarantee
from Kookmin Bank and an expected
Moody’s rating of Aa3.
Lotte Property & Development operates
the 123-story Lotte World Tower and Mall,
a major tourism and shopping complex in
Seoul.
TAIWAN
SYNDICATED LOANS
› KKR EYES LOAN FOR LCY CHEMICAL
Private-equity firm KKR is sounding the
market for a loan of about US$1bn to
support its leveraged buyout of Taipei-listed
specialty chemicals maker LCY CHEMICAL. (See
News.)
The loan is likely to be denominated in
US and NT dollars.
KKR is leading a consortium of investors,
including employees and family members
of the founders of LCY Chemical, for
the buyout which values the target at
NT$47.8bn (US$1.56bn).
The consortium will pay NT$56 per
share, representing a 17.3% premium to
LCY Chemical’s closing price on July 20,
according to the latter’s press release on
July 22.
Upon completion, KKR will hold a
majority and controlling interest in LCY
Chemical, which will be delisted from the
Taiwan Stock Exchange.
KKR is making the proposed investment
from its Asian Fund III. The take-private
transaction is expected to close in the
fourth quarter, subject to approval from
shareholders and regulators in Taiwan and
China.
Founded in 1965, LCY Chemical makes
specialty chemicals with a concentration
on thermoplastic elastomers and
performance plastics used in a wide range
of products.
› QUANTA COMPUTER INCREASES LOAN
QUANTA COMPUTER has increased a three-
year loan to US$880m from the US$550m
target after attracting 19 banks in general
syndication.
Mizuho Bank was the mandated
lead arranger and bookrunner of the
transaction, which comprises a US$560m
tranche A for Quanta and a US$320m
tranche B for its Cayman-incorporated
subsidiary QUANTA INTERNATIONAL.
The interest margins for tranches A
and B are 87bp and 95bp over Libor,
respectively. The Taiwanese notebook
computer maker will pay any excess
interest rate beyond a 42bp difference
between TAIFX and Libor.
Banks joining as MLABs were offered a
top-level upfront fee of 15bp. Signing was
on July 18.
Funds are to refinance a US$360m
revolving credit facility signed in August
2013 and for working capital purposes.
Mizuho also led the 2013 deal, which
had a three-year tenor with a two-year
extension option and offered a margin of
108bp over three or six-month Libor. The
borrower would pay any excess interest
rate beyond a 38bp difference between
TAIFX and Libor.
For full allocations, see http://www.ifrasia.com.› ADCB BACK WITH US$400M LOANABU DHABI COMMERCIAL BANK is returning to the
loan market for a US$400m loan after a
nearly two-year absence.
Mizuho Bank is the initial mandated lead
arranger and bookrunner of the facility.
Bank of China joined with the same title
before the launch.
The loan is equally split into a three-year
tranche and a five-year portion. Only the
five-year tranche is being syndicated.
The interest margins are 63bp and
95bp over Libor for the three and five-
year pieces, respectively. The marketed
remaining life is 4.83 years.
Lead arrangers committing US$30m
or more will receive an all-in pricing of
105.35bp via a participation fee of 50bp,
while arrangers joining with US$20m–
$29m earn an all-in pricing of 104.32bp via
a 45bp fee. Managers joining with US$10m–
$19m earn an all-in pricing of 103.28bp
via a 40bp fee. Commitments are due on
August 10.
In November 2016, ADCB, which is rated
A/A+ (S&P/Fitch), raised a US$600m three-
year senior unsecured term loan. WellsWpd sends RFP for project
Loans First phase to raise NT$64.7bnGerman wind project developer WPD is
requesting proposals for a NT$64.7bn
(US$2.1bn) 18-year project financing for the
first phase of an offshore wind project in
Taiwan’s Yunlin area.
Sumitomo Mitsui Banking Corp is
the financial adviser on the deal, which
comprises a NT$25.88bn commercial loan
tranche and a NT$38.819bn ECA tranche
with insurance cover from EKF, Hermes and
Atradius.
The deadline for responses is August 20,
and the deal is expected to close by the end
of this year.
Separately, Wpd will raise another project
financing of about NT$55bn to back the
second phase of another offshore wind
project in Taiwan’s Guanyin area next year.
The projects are part of Taiwan’s ambitious
target to install 5.5GW of offshore wind
power capacity by 2025. On April 30, the
country’s Ministry of Economy announced
the award of 1GW of grid connection capacity
to Wpd for the implementation of the two
projects.
The Yunlin project, to be built eight
kilometres off Yunlin County’s coast, will
be commissioned in 2020/2021 with about650–700 MW. The Guanyin project, to be
built two kilometres off Taoyuan County’s
coast, will be commissioned in 2021 with
about 350 MW.
In June, a NT$18.7bn project financing
was signed to back the second stage of
the 128MW Formosa I OWF, Taiwan’s first
commercial-scale offshore wind project. BNP
Paribas was the coordinator and financial
adviser on the 16-year financing, which
comprises a NT$16.6bn commercial term loan
tranche and a portion with insurance cover
from EKF.
The other banks lending to the commercial
tranche included ANZ, Cathay United Bank,
Credit Agricole CIB (documentation bank),
DBS Bank, EnTie Commercial Bank, ING Bank
(modelling bank), KGI Bank, MUFG (insurance
bank), Societe Generale (technical bank) and
Taipei Fubon Commercial Bank.
The interest margin on the commercial
tranche was 230bp over Taibor during the
construction period. The margin will step
down to 200bp after the start of operations,
which is expected sometime in 2020. The
EKF-covered tranche offered margins ranging
from 86bp to 116bp.
EVELYNN LIN