JAPAN
TRIO SIGNS DESALINATION
PROJECT LOAN
Three Japanese banks signed a US$114m 20-
YEARûLOANûFORûTHEû'#û#ORP
LEDû3HARQIYAHû
desalination project in Oman on July 11,
Nippon Export & Investment Insurance (Nexi)
said.
Nexi will provide 100% political and 90%
commercial risk coverage to the loan, which
was provided by MUFG, Shinsei Bank and
Sumitomo Mitsui Trust Bankû4HISûISû.EXISûlRSTû
insurance coverage for a seawater
desalination plant project. Shinsei is
PROVIDINGû53MûTOûTHEûPROJECTû
The borrowing entity is AL ASILAH
DESALINATION ûOWNEDûBYûAPANSû*'#û û
/MANSû5NITEDû)NFRASTRUCTUREû$EVELOPMENTû
ûANDû3OUTHû+OREASû$OOSANû(EAVYû
)NDUSTRIESûû#ONSTRUCTIONû
The project is expected to begin
operations in April 2021 and to sell about
80,000 cubic metres of desalinated water
PERûDAYûTOû/MANû0OWERûû7ATERû
Procurement for more than 20 years. The
total project cost is estimated at ¥20bn
(US$180m).JOGMEC SIGNS ZERO-INTEREST LOANJAPAN OIL GAS & METALS NATIONAL CORPSûLATESTû
cBNû53M ûONE
YEARûBULLETûTERMûLOANû
has priced with a zero interest rate after raising a
HEAVYûOVERSUBSCRIPTIONûOFûUPûTOûcBN ûTHEû
state-backed company said on July 20.
The interest rate on the government-
guaranteed loan was determined through
CONVENTIONALûAUCTIONS ûSIMILARûTOû*/'-%#Sû
previous zero-interest loan in April. Mizuho
Bank is the agent. Several lenders, including
regional banks, joined in syndication.
$RAWDOWNûISûSLATEDûFORû!UGUSTûû
Proceeds are for operating funds.
/NûITSûLASTûVISITûINû!PRIL û*/'-%#ûRAISEDû
cBNûTHROUGHûAûONE
YEARûTERMûLOANû
that was also heavily oversubscribed.MCUBS MIDCITY SIGNS REFIMCUBS MIDCITY INVESTMENT CORP has signed a
cBNû53M ûBULLETûLOANûFORû
RElNANCING ûTHEû4OKYOû3TOCKû%XCHANGE
listed real estate investment trust said.Mizuho Bank arranged the loan, which is
split into seven tranches with tenors
ranging from 4.5 to 10 years. Three of the
seven tranches pay interest margins
ranging from 27.5bp to 50bp over three-
month Tibor, while the other four
TRANCHESûCARRYûlXED
RATEûINTEREST ûWHICHûISû
yet to be determined.
Aozora Bank, Hyakugo Bank, Mizuho Trust &
Banking, MUFG, Nishi-Nippon City Bank, Resona
Bank, Senshu Ikeda Bank, Sumitomo Mitsui
Banking Corp and Sumitomo Mitsui Trust Bank
JOINEDûINûSYNDICATIONû$RAWDOWNûISûSLATEDû
FORû*ULYû
4HEûFUNDSûWILLûRElNANCEûAûcBNûlVE
YEARûTERMûLOANûCOMPLETEDûINû*ULYûûANDû
a ¥10.5bn three-year term loan closed in
July 2015. Mizuho arranged both loans.
4HEûBORROWERûINVESTSûMAINLYûINûOFlCEû
buildings in Tokyo, Osaka and Nagoya.KENEDIX RAISES ¥12.7bn LOANKENEDIX RESIDENTIAL INVESTMENT CORP is set to
sign a ¥12.7bn (US$114m) bullet term loan
for real estate acquisitions, the Tokyo
Stock Exchange-listed real estate
investment trust said.
Sumitomo Mitsui Banking Corp is arranging
the facility, which comprises a ¥5.7bn 1.5-
year tranche and a ¥7bn 7.5-year portion
WITHûRESPECTIVEûINTERESTûMARGINSûOFûBPû
and 52.5bp over one-month Tibor.
Aozora Bank, Bank of Fukuoka, Development
Bank of Japan, Mizuho Bank, Mizuho Trust &
Banking, MUFG, Nippon Life Insurance, Resona
Bank, Shinsei Bank and Sumitomo Mitsui Trust
Bank joined in syndication.
Signing and drawdown are slated for
*ULYûûANDû!UGUSTû ûRESPECTIVELYû4HEû
REIT mainly invests in residential
buildings.MALAYSIA
FLY SIGNS AIRCRAFT PURCHASE LOANNew York-listed FLY LEASING has signed a
US$1.27bn secured loan backing its
PURCHASEûOFûAIRCRAFTûFROMû-ALAYSIASûmAGSHIPû
budget airline AirAsia.
BNP Paribas, Citigroup, Commonwealth Bank
of Australia and Deutsche Bank are the original
mandated lead arrangers and bookrunners
of the facility, which was reduced slightly
FROMûAû53BNûTARGETûFirst Abu Dhabi
Bank and MUFG Union BankûJOINEDûASû-,!"S û
while Fifth Third Bank and Korea Development
BankûCAMEûINûASû-,!SûBEFOREûTHEûLAUNCHûINTOû
general syndication.
The deal comprises a US$574.5m term
LOANûTRANCHEû!ûFORû&LYû,EASINGûANDûAû
53MûTERMûLOANûTRANCHEû"ûFORûINCLINE B
AVIATION.Wpd sends RFP for wind
farm project
TAIWAN 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 to fund 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
Minis try 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 about 650–700 MW. TheGuanyin 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 of 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 Lynn