IFR Asia - 22.09.2018

COUNTRY REPORT SINGAPORE

SYNDICATED LOANS

› URC SEEKS REFI FOR LOAN

Philippine food and beverage firm UNIVERSAL
ROBINA is reaching out to lenders for a
NZ$420m (US$279m) five-year refinancing of
a 2014 loan that backed its takeover of New
Zealand snack food company Griffin’s Food.
ANZ, Citigroup and Standard Chartered
are the mandated lead arrangers and
bookrunners of the bullet transaction,
which is said to pay an interest margin of
110bp over BKBM. Invitations have been
sent out to existing lenders to join as
MLABs.
The deadline for commitments is October
19.
In December 2014, URC completed a
NZ$742.32m five-year acquisition loan with
10 banks joining in senior syndication.
ANZ, Citigroup, MUFG and StanChart were
the MLABs of the loan, which is split into a
NZ$420m facility A and a NZ$322.32 facility
B. It offered a top-level all-in of 185bp based
on a margin of 160bp over BKBM and a
remaining average life of 4.75 years.

› CIMIC LOCKS DOWN WAIKERIA PRISON PPP

Australia-listed CIMIC GROUP has won the
bid from the New Zealand government to
develop the NZ$750m WAIKERIA CORRECTIONS
AND TREATMENT FACILITY public-private
partnership prison project, according to a
company stock exchange filing on Tuesday.
CIMIC has led the development of the
Waikeria PPP project, with its units Pacific
Partnerships providing equity financing for
25 years and CPB Contractors undertaking
design and construction for the facility.
Other consortium partners are HRL
Morrison & Co for financing and Cushman
& Wakefield for asset management and
facilities maintenance.
The project will generate revenues of
around NZ$750m to CIMIC.
In late June, a five-bank group clubbed
a NZ$525m revolving credit facility for
the Waikeria prison project, according to
LPC data. The banks are ANZ, KfW, MUFG,
Mizuho and Natixis. MUFG was the sole
financial adviser.
The Waikeria project will deliver
accommodation for 500 prisoners, along
with a secure mental health unit providing
care for additional prisoners. The new
facility will be built on the site of the
existing Waikeria prison in the Waikato
region (upper North Island), as part of a
government programme to deliver a more
effective and humane justice system.
Construction has already commenced
with the new Waikeria facility expected to
open in 2022.

The Waikeria PPP is CIMIC’s third PPP

in New Zealand. Last year in April, CIMIC

won the contract to build the New Zealand

Schools PPP, which involves the design and

construction of four new primary schools

(three in Auckland and one in Hamilton),

the co-location of Shirley Boys’ High

School and Avonside Girls’ High School in

Christchurch, and operational services of

the schools for 25 years.

The agreement contains an expansion

mechanism under which the Ministry of

Education has the right to add additional

schools to the project. The schools are set

to open in 2019.

PHILIPPINES

DEBT CAPITAL MARKETS

› SECURITY BANK PRICES US$300M BOND

SECURITY BANK CORP has priced a US$300m

bond with a maturity of five years and one

day at Treasuries plus 168bp.

Orders reached US$800m from 68

accounts. Asia and EMEA accounted for 73%

and 27% respectively.

By investor type, asset and fund

managers accounted for 55% of the Reg

S notes, followed by insurers and banks,

which took 20% each, with the rest going to

private banks.

Guidance tightened from Treasuries plus

190bp area.

The notes have initial ratings of Baa2 by

Moody’s and will be issued off the lender’s

US$1bn EMTN Programme.

Proceeds will be used to extend term

liabilities, expand the Philippine bank’s

funding base, improve liquidity gaps,

fund investments and for other general

corporate purposes.

Citigroup, CLSA, MUFG and UBS (B&D) were

joint coordinators and joint lead managers.

› BPI, METROBANK GET BOARD NODS

BANK OF THE PHILIPPINE ISLANDS and METROPOLITAN

BANK & TRUST COMPANY have approved peso

debt offerings totalling up to Ps150bn

(US$2.8bn), according to a filing on the

Philippine Stock Exchange.

The boards of BPI and Metrobank have

approved the establishment of peso bond

and commercial paper programmes of up

to Ps50bn and Ps100bn, respectively.

Metrobank will raise the funds in one or

more tranches for tenors of at least three

months depending on market conditions.

The funds will be used for lending activities

and to diversify its funding sources.

In the past month, Union Bank of the

Philippines, BDO Unibank and Philippine

National Bank have all received board

approvals to raise debt totalling Ps120bn,

after the central bank dropped a rule

requiring prior approval for debt sales on

August 9.

SYNDICATED LOANS

› ABOITIZ SEEKS US$338M M&A LOAN

ABOITIZ EQUITY VENTURES’ food subsidiary,

Pilmico International, is seeking a US$338m

five-year loan to back its purchase of a

Singapore-based agribusiness.

DBS Bank, Mizuho Bank, MUFG and Standard

Chartered are the mandated lead arrangers

and bookrunners of the deal, which pays an

interest margin of 120bp over Libor and has

an average remaining life of 4.75 years.

Banks joining as MLAs receive an upfront

fee of 25bp. The deadline for commitments

is mid-October.

In July, Pilmico agreed with Singapore-

based conglomerate Golden Springs Group

to buy the latter’s 75% stake in Gold Coin

Management Holdings for US$550m, in

what is believed to be the biggest cross-

border M&A transaction in the animal feed

industry in South-East Asia.

Gold Coin Management offers a wide

range of products for both the livestock and

aquaculture industries, including animal

and hatchery feeds, premixes, concentrates

and compound feed. GSG is active in the

agriculture and health-care sectors of

emerging markets.

Pilmico, ranked among the top three

flour and animal nutrition producers in the

Philippines, is the integrated agribusiness

and food company of AEV. The latter is

the public holding company of Philippine

conglomerate Aboitiz Group, with major

investments in power, banking and

financial services, food, infrastructure and

land.

SINGAPORE

DEBT CAPITAL MARKETS

› HSBC RETURNS FOR AT1

HSBC HOLDINGS, rated A2/A/AA–, returned

to Singapore last Monday for its second

Additional Tier 1 issue of S$750m

(US$546.4m) priced at 5%.

Final orders amounted to more than