for the 2023 reopening and more than
NZ$450m for the new 10-year offering at
final pricing.
HNZL opened the 2023 line on June 1
this year with a NZ$250m sale at mid-swaps
plus 32bp, alongside a NZ$250m 3.36%
seven-year note.
The issuer is a crown agency that
provides housing services for New
Zealanders in need.
SYNDICATED LOANS
› TWO DEGREES MOBILE ATTRACTS TWO
New Zealand mobile phone operator TWO
DEGREES MOBILE has attracted two lenders so
far to a NZ$250m (US$161m) three-year
loan.
Hua Ying Management, an investment
company and affiliate of Huawei
Techologies, has joined as mandated lead
arranger. The other new lender is NEC
Capital Solutions.
MLAB and underwriter ING Bank has
extended general syndication until early
November. The original deadline for
responses was end-September.
Bank of New Zealand, which joined the
deal as MLA before general syndication
was launched, pre-funded the loan on July
31 along with ING, and is also the facility
agent.
The bullet loan pays a top-level all-in
pricing of 363.33bp based on an opening
interest margin of 330bp over BKBM for an
opening leverage of 2x and an MLA fee of
100bp.
There is also an uncommitted NZ$35m
accordion.
Toronto-listed private equity firm Trilogy
International Partners owns 73.2% of the
borrower.
PHILIPPINES
DEBT CAPITAL MARKETS
› PETRON GETS SEC NOD TO SELL BONDS
PETRON has received permission from the
Philippines’ Securities and Exchange
Commission to sell Ps20bn (US$369m)
fixed-rate bonds, according to a stock
exchange filing.
The country’s largest oil refiner has fixed
the yield at 7.8183% for notes maturing in
2024 and 8.0551% for those due in 2025.
The interest on the bonds will be paid
quarterly.
Petron has appointed BDO Capital
and Investment Corp, BPI Capital Corp and
Chinabank Capital as joint lead bookrunners
and underwriters. BDO and BPI Capital are
issue managers as well.
It has also appointed First Metro Investment
Corp, PNB Capital and SBI Capital as co-lead
underwriters.
The proceeds of the issue will be used
to pay outstanding short-term loans from
Bank of the Philippine Islands.
The bonds will be offered on October 19.
PhilRatings has assigned a Aaa rating to
the notes.
Petron is yet to announce the breakdown
between the tranches.› ABOITIZ APPROVED FOR BOND SALEABOITIZ POWER CORP has been approved by
the Securities and Exchange Commission
to raise up to Ps15bn from fixed-rate peso
bonds.
The Philippines power developer is
targeting Ps10bn, with an oversubscription
option of up to Ps5bn for bonds due in 2024
and 2028.
Aboitz Power did not immediately
respond to an email regarding the yield for
the bonds.
The notes will be issued in the second
tranche of its Ps30bn debt securities
programme registered with the market
regulator.
The proceeds of the issue will be used to
refinance a medium-term loan at wholly
owned subsidiary Therma Power, repay
short-term loan obligations and for general
corporate purposes.
It has mandated BDO Capital, BPI Capital
and United Coconut Planters Bank as joint lead
underwriters.
The books opened last Friday and close
on October 18. The bonds will be issued on
October 25.
PhilRatings has assigned a Aaa rating to
the notes.SINGAPORE
DEBT CAPITAL MARKETS
› OLAM PREPARES ESG BONDSOLAM INTERNATIONAL is considering issuing
bonds with an environmental angle,
not long after it completed a pioneering
Sustainable loan transaction.
“We are now at various stages of
looking at issuing Social bonds or
Sustainable bonds, and on track to havea significant part of our financing come
from Sustainable financing,” said Sunny
Verghese, co-founder and group CEO
of Olam, speaking to media at the ANZ
Finance & Treasury Forum in Singapore last
Wednesday.
Verghese said Olam was likely to issue
in US dollars, or potentially in euros or
yen, as its operations have a need for those
currencies.
In March, Olam raised US$500m from
Asia’s first Sustainability-linked revolving
credit facility. The agribusiness company
is measured each year against certain
environmental, social and governance
standards, and if it fails to meet the agreed
improvement targets, the interest rate on
the loan will increase.
“There is some uncertainty, but it
is something that from an accounting
standpoint we can live with,” he said,
noting that the potential coupon increase
of 10bp was relatively small compared
with the total size of the interest
payment.
That has led some bankers to wonder
whether a similar structure would work for
bond issues.
“The type of transaction Olam has done
is replicable in the bond market,” said
Katharine Tapley, head of sustainable
finance at ANZ, when asked about the
structure.
“The way we would make that work is a
pricing penalty. Investors would be more
understanding if the coupon is increasing
for failing to meet targets than if the
coupon decreases if it hits targets.”› METRO MEETS INVESTORSMETRO HOLDINGS held fixed income investor
meetings last Thursday arranged by sole
lead manager DBS Bank on a potential
Singapore dollar bond offering.
The Singapore department store
owner recently established a S$1bn
(US$724m) multi-currency debt issuance
programme which allows it to sell senior
bonds or perpetual securities in various
currencies.
Metro started as a textile store 60
years ago, but has grown into a property
company and department store operator.
Its key markets are Singapore, China and
Indonesia, and it recently expanded into
the UK.› CHIP ENG SENG TRIGGERS COCA change in shareholding control in CHIP ENG
SENG has triggered a put option in S$245m
of bonds, allowing investors to redeem
their notes at par together with accrued
interest.