MLAs with commitments of Rmb200m
and more receive a top level all-in pricing
of 130% of the PBoC rate based on a upfront
fee of 30bp, lead arrangers committing
Rmb100m–Rmb199m earn an all-in pricing
of 129% of the PBoC rate through a 21bp
upfront fee, while arrangers coming in with
Rmb50m–Rmb99m are offered an all-in of
128% of the PBoC rate via a 12bp fee.
The all-in pricing includes an early bird
fee of 16bp for commitments by September
- The final deadline is October 26. China
Grand Automotive Services Co, which owns
100% of the borrower, is the guarantor.
Proceeds will be used for working capital,
as well as refinancing of an increased
Rmb1.793bn two-year amortising loan
the borrower drew down in January 2017.
MLABs Hang Seng and HSBC brought in
nine other banks on the deal, which pays a
margin of 106% of the PBoC rate and has an
average life of 1.9 years.
Separately, the borrower is the guarantor
for a US$200m three-year term loan currently
in syndication in the offshore market. The
borrowers of the dual-tranche deal are Baoxin
Auto Finance I and Grand Baoxin Auto Group.
The loan offers a top level all-in pricing of
349bp based on a margin of 308bp over Libor
and an average life of 2.925 years. Standard
Chartered is the MLAB.
› FOSUN HIGH TECH BACK FOR RMB800MSHANGHAI FOSUN HIGH TECHNOLOGY (GROUP) has
returned for a Rmb800m three-year term
loan, less than two years after it signed a
bigger onshore deal.
Hang Seng Bank, HSBC, Standard Chartered
and Societe Generale are the mandated lead
arrangers and bookrunners.
The new facility offers an all-in pricing
of over 120% of the PBoC rate based on an
interest margin of 118% of the benchmark.
Commitments are due by October 26.
The borrower’s Hong Kong-listed parent
Fosun International is the guarantor.
Shanghai Fosun High Technology last
tapped the onshore loan market in January
2017 for a Rmb1bn three-year loan with seven
banks, including MLABs Hana Bank and HSBC.
That deal paid a margin of 95% of the PBoC
rate and a top-level upfront fee of 30bp.
Parent Fosun International wrapped up
an increased US$553m-equivalent three-
year term loan with 10 banks in May.
That deal paid a top level all-in pricing of
236.67bp for US dollar and 206.67bp for
euro tranche.
In August, Fosun Industrial, an indirect
unit of Fosun International, increased a
three-year senior bullet loan to US$600m
from an initial target of US$550m. The dealpaid a top-level all-in pricing of 175bp based
on an interest margin of 150bp over Libor.
Proceeds of the loan refinanced a US$800m
one-year bridge loan that backed Fosun’s
purchase of a stake of about 74% in India’s
Gland Pharma.› BEIJING HYUNDAI INCREASES LOANBEIJING HYUNDAI AUTO FINANCE has increased
a three-year term loan to Rmb2.24bn
following commitments from 11 banks in
general syndication.
ANZ, Credit Agricole, HSBC, Standard
Chartered and Sumitomo Mitsui Banking
Corp were the original mandated lead
arrangers and bookrunners, while Korea
Development Bank joined with the same
title. SMBC is the facility agent.
The amortising facility, launched with an
initial target of Rmb2bn, offered a top level
all-in pricing of 123.8% of the PBoC rate
based on an interest margin of 115% of the
PBoC rate for an average life of 2.75 years.
Funds are for working capital and
general corporate purposes, including debt
repayment.
Signing took place on September 13 and
drawdown is slated for September 26.
The company’s previous borrowing was
a Rmb2bn three-year amortising loan inMinsheng unit onshore loan killed by Shibor
Loans Financial leasing arm cancels onshore loan after six-month struggleMINSHENG FINANCIAL LEASING has cancelled a
Rmb500m (US$73m) one-year onshore
loan following a sharp fall in the Shanghai
Interbank Offered Rate (Shibor) this year.
Sole mandated lead arranger and
bookrunner Hana Bank (China) had launched
the bullet deal in early February, offering
a top-level all-in pricing of 95bp based on
an interest margin of 80bp over one-year
Shibor. It was the second financing in China’s
syndicated loan market with pricing tied to
Shibor.
However, the transaction lost appeal for
lenders after a sharp fall in Shibor. The one-
year rate has plummeted 125bp this year,
ending Wednesday at 3.513% versus last
year’s close of 4.758%.
Lenders already committed to the deal
and others considering participation failed in
their attempts to renegotiate a better pricing
with the borrower.
The first Shibor-linked syndicated loan
in the onshore market closed in October
last year when Merchants Union Consumer
Finance wrapped a Rmb1.15bn one-yearfacility. Fubon Bank (China) was the sole
MLAB of the deal, which paid a top-level
all-in pricing of 115bp based on a margin of
100bp over Shibor.
While Minsheng Financial Leasinig has opted
to cancel its Shibor-linked borrowing, other
borrowers have attempted to counter Shibor
volatility. In August, Industrial Bank Financial
Leasing completed China’s first loan with a
pricing structure that addressed the mismatch
between the official People’s Bank of China
rate, a widely used benchmark for renminbi-
denominated loans, and Shibor, which affects
the cost of funding for many of the small to
medium-sized domestic banks and most
international lenders operating in China.
Six banks participated in IBFL’s Rmb762m
(US$112m) one-year term loan, which pays a
variable interest margin of 108.5% to 120% of
the official PBoC lending rate, depending on
the Shibor rate at the time.
Meanwhile, Minsheng Financial Leasing,
through different subsidiaries, is raising
money offshore via three transactions.
Its wholly owned unit MINSHENG HONG KONGINTERNATIONAL LEASING is seeking a US$300m
three-year bullet loan, paying a top level
all-in pricing of 170bp over Libor.
Three special purpose vehicles are in the
market for a combined US$95m five-year
shipping financing, offering a margin of
160bp and a 50bp fee.
Another unit called CMBC CAPITAL HOLDINGS
has launched a two-year borrowing of up to
HK$1.4bn-equivalent (US$178m), with a top
level all-in pricing of 177.5bp for HK dollar
tranche and 172.5bp for US dollar portion.
Based on the current three-month Libor
and Hibor rates, these offshore loans are
all priced cheaper than the levels at which
Minsheng Financial Leasing could borrow in
the onshore loan market.
At present, lenders need an all-in pricing
of at least 120% of the PBoC rate from any
syndicated loan in the onshore market to
make returns. That translates into 5.7% or
higher in fixed terms, based on the current
PBoC base rate of 4.75% for loans with
maturities between one and five years.
YAN JIANG