› JREIC TO RENEW FACILITY AT ¥60BN
JAPAN REAL ESTATE INVESTMENT CORP was set
to sign on Thursday a ¥60bn three-year
commitment line to renew and increase an
existing facility, the Tokyo Stock Exchange-
listed real estate investment trust said in a
statement on Wednesday.
Mitsubishi UFJ Financial Group and Mizuho Bank
are the arrangers and agents, while Sumitomo
Mitsui Trust Bank joined as a participant.
Funds are for acquisitions and
refinancing.
In September last year, JREIC renewed a
¥50bn facility, which was originally put in
place in September 2015.
The REIT invests solely in office buildings
in Tokyo.
EQUITY CAPITAL MARKETS
› WORLD CO PRICES IPO AT BOTTOM
Japanese apparel maker WORLD CO has priced
its ¥48.4bn (US$432m) IPO at the bottom
of the indicative range in a relisting on the
Tokyo Stock Exchange.
The company sold 16.7m shares in the
base deal at ¥2,900 each versus the range of
¥2,900–¥3,200. The price values the company
at a market capitalisation of ¥105bn,
according to a term-sheet seen by IFR.
About 14.8% of the deal was allocated
to the international offering, with the
remaining 85.2% going to the domestic
tranche.
There is an overallotment option of up to
1.8m shares.
World Co. delisted in 2005 when it was
taken private in a US$1.96bn management
buyout.
Founded in 1959, the Kobe-headquartered
fashion clothing company adopted a
holding company structure last year to spin
off brands into separate companies aligned
by business model and marketing channels.
Proceeds will mainly be used to repurchase
outstanding shares and invest in the
company’s IT system and M&A activities. The
remainder will be used to repay debt.
The company has expanded
internationally in recent years, for example
establishing a joint venture with Thai
conglomerate SAHA Group in 2016.
World Co posted revenue of ¥246bn in
the year to March 2018, down from ¥250bn
a year earlier, according to the company’s
website. However, operating income rose to
¥15.9bn from ¥14.5bn over the same period.
The shares will list on September 28.
Nomura was the global coordinator for
the float. It was also the joint bookrunner
and joint lead manager with SMBC Nikko
and Mizuho.
MALAYSIA
DEBT CAPITAL MARKETS
› UEM SUNRISE PLANS M$700M SUKUKUEM SUNRISE has appointed CIMB, HSBC
Amanah Malaysia and Maybank to jointly lead
an offering of Islamic bonds to raise up to
M$700m (US$171.3m).
A launch is scheduled for mid-October.
Tenors of three, five and/or seven years
may be marketed.
The Malaysian real estate company will
issue the notes, rated AA– by Marc, off a
M$2bn Islamic CP/MTN programme under
the murabahah format via a tawarruq
arrangement.SYNDICATED LOANS
› EPF REFI ENTERS LIMITED SYNDICATIONGovernment-linked pension fund EMPLOYEES
PROVIDENT FUND OF MALAYSIA is reaching out to
lenders for a £282.4m (US$371.4m) five-year
refinancing.
Standard Chartered is the sole mandated
lead arranger and bookrunner of the deal,
which is in limited syndication.
The new facility, which is backed by
UK-based assets, refinances a £320m
five-year club loan that matured in July.
Citigroup was the coordinator on the
previous deal, which attracted three
other banks and paid all-ins of around
165bp–170bp.
EPF’s last loan before the latest
borrowing was a €268m (US$315m then)
new-money borrowing in December for
its purchase of logistics assets in Europe.
HSBC was the sole MLAB of the five-year
deal, which attracted four other lenders
in limited syndication. That financing,
split into a €156m tranche A and €112m
tranche B, is said to have paid a top-level
all-in pricing in the 90s based on an interest
margin of 82bp over Libor.EQUITY CAPITAL MARKETS
› LEONG HUP TO FILE US$600M IPOPoultry producer LEONG HUP INTERNATIONAL
plans to file a draft prospectus with the
Securities Commission over the next few
weeks for an IPO of up to US$600m on
Bursa Malaysia, people with knowledge of
the transaction have said.
The deal was originally expected in thefourth quarter but is now likely to launch
early next year.
The founding Lau family owns 77% of the
company and Affinity Equity Partners 23%.
Leong Hup was previously listed on
Bursa Malaysia as Leong Hup Holdings but
delisted in 2012.
The company has operations in Malaysia,
Indonesia, Vietnam, Singapore and the
Philippines. It owns poultry farms and sells
chicken products under the brands Ayam
A1 and SunnyGold in Malaysia, SunnyGold
and Ciki Wiki in Indonesia and Lee Say in
Singapore.
Credit Suisse, Maybank and RHB are joint
global coordinators and bookrunners with
AmInvest, DBS, Hong Leong and OCBC.NEW ZEALAND
DEBT CAPITAL MARKETS
› ASB MARKETS EURO COVERED BONDASB BANK has mandated Barclays, CBA, DZ
Bank and UBS to arrange investor meetings
in Europe for a €500m (US$590m) no-grow
seven-year covered bond, rated Aaa/AAA
(Moody’s/Fitch), which is expected to price
this week.
The last Kiwi major bank to access
the euro covered market was Bank of
New Zealand, which raised €750m from
a seven-year covered Eurobond sale on
June 26, priced at mid-swaps plus
15bp.› PFI NOTE OFFER NETS NZ$100MPROPERTY FOR INDUSTRY raised the maximum
NZ$100m (US$65m) it was targeting from
an unrated seven-year senior secured fixed-
rate retail note offer.
The 4.25% October 1 2025s priced last
Friday at par, at the tight end of mid-swaps
plus 160bp–170bp guidance.
Westpac was arranger and joint lead
manager with Deutsche Craigs and Forsyth
Barr.› AUCKLAND AIRPORT TARGETS LOCAL NOTEAUCKLAND AIRPORT, rated A– (S&P), has
appointed ANZ and Westpac as joint lead
managers for an offering of listed six-year
retail notes to New Zealand retail and
institutional investors.
In October 2017, Auckland Airport issued
a NZ$100m 3.64% 5.5-year retail note,
six months after a NZ$150m three-year
floating-rate sale.