have not yet launched their offerings
because demand is muted.
› IRCON CLOSES RS4.7BN IPO
IRCON INTERNATIONAL’s Rs4.7bn IPO closed last
Thursday after books were covered 9.9
times.
The institutional tranche was covered
12.29 times, the high-net-worth investor
tranche 4.92 times and the retail portion
10.07 times.
People familiar with the deal said the IPO
sailed through without the support of Life
Insurance Corp of India, which typically
bids for the listings of any state-owned
companies.
“Clearly no calls went from the
government to LIC to subscribe to the issue.
There was fairly decent demand,” a banker
away from the deal said.
The government of India, which owns
the company, is selling 9.9m shares, or
a 10.5% stake, in the Rs470–Rs475 range.
Pricing is expected to be at the top.
The railway infrastructure engineering
and construction company earned a profit
before tax of Rs5.6bn in the financial year
to March 31 2017, versus Rs6.1bn in 2016.
Axis, IDBI Capital and SBI Capital Markets
are the bookrunners.
INDONESIA
DEBT CAPITAL MARKETS
› WASKITA KARYA ANNOUNCES COUPONS
WASKITA KARYA has fixed the coupons on
Rp2trn (US$135m) of dual-tranche rupiah
bonds, according to an offer document.
The Indonesian state-owned developer
has fixed the coupons at 9% for a three-year
tranche of Rp502bn and at 9.75% for a five-
year piece of Rp854bn, while it plans to sell
Rp643bn on a best effort basis.
Bahana, BNI, Danareksa, DBS, IndoPremier
and Mandiri Sekuritas are the lead arrangers
of the deal.
The funds will be used to meet working
capital requirements.
Fitch Ratings has assigned a A– rating to
the notes.
The bonds will be allotted to investors on
September 28.
Separately, Waskita Karya has returned
to the loan market with a Rp3trn five-
year facility. Sumitomo Mitsui Banking Corp
is the sole mandated lead arranger and
bookrunner of the amortising financing,
which pays an interest margin of 250bp
over Jibor and has an average life of 3.375
years.
In February, the company raised
Rp3.44trn from a dual-tranche bond issue.› SMF EYES TWO-PART BONDSSARANA MULTIGRIYA FINANSIAL is planning to
raise Rp2trn from a two-part domestic bond
issue, according to the offer document.
The Indonesian state-owned mortgage
firm has given indicative coupons in the
range of 7.5%–8.5% for a one-year tranche
and 8.0%–9.0% for a three-year portion.
BNI Sekuritas, Danareksa, Indo Premier
Sekuritas, Mandiri and Trimegah Sekuritas are
lead arrangers for the issue.
Pefindo has assigned a AAA rating to the
bonds.JAPAN
DEBT CAPITAL MARKETS
› TOYOTA PRICES DUAL TRANCHERTOYOTA MOTOR CREDIT, rated Aa3/AA– (Moody’s/
S&P), last Monday priced a US$1.5bn
dual-tranche SEC-registered bond offering.
A US$750m two-year floating-rate note
priced at par with a coupon of three-month
Libor plus 17bp, from initial thoughts of
25bp area.
A US$750m five-year fixed tranche priced
at 99.804 with a coupon of 3.45% to yield
3.493%. This was equivalent to Treasuries plus
60bp, inside initial thoughts of 70bp area.
Barclays, RBC Capital Markets, Santander and
SMBC Nikko were active bookrunners.› HITACHI CAPITAL PRINTS BAO DAOHITACHI CAPITAL CORP last Monday priced a
Rmb600m (US$87m) three-year Bao Dao
bond at par to yield 4.60%, in line with final
guidance.
Hitachi Capital (UK) will issue the senior
unsecured Reg S bonds, which have a
guarantee from Hitachi Capital Corp. The
bonds are expected to be rated A– by S&P,
in line with the guarantor.
The Dim Sum bonds will be listed in
London and Taipei.
Standard Chartered Bank (Taiwan) was sole
bookrunner. Mega International Commercial
Bank and Sinopac Securities were co-managers.› NISSAN MOTOR LANDS TRIPLENISSAN MOTOR ACCEPTANCE CORP, rated A2/A
(Moody’s/S&P), last Tuesday pricedUS$1.3bn in dollar bonds across three
tranches.
A US$400m three-year fixed-rate bond
priced at Treasuries plus 78bp, while a
US$400m three-year floating-rate priced at
par to yield three-month Libor plus 63bp.
Initial price thoughts were Treasuries plus
95bp area and the equivalent spread over
Libor, before guidance of 80bp area, plus or
minus 2bp, was announced.
A US$500m five-year fixed-rate bond
priced at Treasuries plus 95bp, at guidance
and inside initial thoughts of 110bp area.
The three-year was seen to be flat to the
secondary curve, while a 2bp concession
was implied for the five-year.
Barclays, HSBC, JP Morgan and SMBC Nikko
were active bookrunners for the 144A/Reg
S trade.SYNDICATED LOANS
› STANDARD BANK REFINANCES NINJA LOANSTANDARD BANK OF SOUTH AFRICA signed a
US$150m three-year Ninja loan last Friday
for refinancing.
Mizuho Bank was the bookrunner and
mandated lead arranger, while Gunma Bank
and State Bank of India joined in syndication.
The interest margin on the loan is more
than its previous deal in September 2015 as
the borrower’s rating has been downgraded
to Baa3/BB+ (Moody’s/Fitch) from Baa2/BBB.
Ninja loans, denominated in any
currency, are syndicated financings for
overseas borrowers in Japan.
In September 2015, South Africa’s largest
commercial bank completed a US$139.3m
three-year debut Ninja loan, which paid an
all-in pricing of 125b via a margin of 100bp
over Libor.› VITOL TASTES SUCCESS WITH SAMURAIEnergy trader Vitol has wrapped up an
increased ¥60.8bn (US$542m) Samurai
borrowing, sources said, returning to Japan
after five years for this year’s second-largest
Samurai loan.
Mizuho Bank, MUFG and Sumitomo Mitsui
Banking Corp were the bookrunners and
mandated lead arrangers, while Development
Bank of Japan joined to share the MLA title.
MUFG is the agent.
Sumitomo Mitsui Trust Bank joined as lead
arranger, and Bank of Yokohama and Hyakugo
Bank as co-arrangers. Regional banks 77
Bank, Chugoku Bank, Gunma Bank, Hachijuni
Bank, Higashi-Nippon Bank, Joyo Bank and
Nanto Bank joined at lower levels.
The loan pays an interest margin of
65bp over yen Libor. VITOL FINANCE BV is the
borrower.