COUNTRY REPORT VIETNAMthree-year tranche will pay 2.64% with a
spread of 50bp.
The deal comes two months after the
Thai auto leasing company sold Bt8bn of
two and three-year bonds priced at 2.07%
and 2.28% at a time when benchmark yields
were still low.
Subscription will be from October 17-18
with settlement scheduled for October 19.
Bangkok Bank, CIMB Thai, Kasikornbank and
Standard Chartered were joint lead managers
and underwriters.
The company is rated AAA by Tris and its
bonds are guaranteed by parent company
Toyota Motor Finance Netherlands, whose
ultimate parent is Japan’s Toyota Motor.
› WHA UPSIZES BOND
WHA CORPORATION has upsized a four-tranche
bond to Bt3.5bn after pricing all the notes
at the wide ends of guidance.
A Bt337.8m two-year tranche was priced
at 2.77%, a Bt454.2m 3.5-year tranche at
3.48%, a Bt328m five-year tranche at 3.74%
and a Bt2.38bn seven-year tranche at 4.03%.
The tranches were marketed last Monday
in respective price guidance ranges of
2.67%–2.77%, 3.38%–3.48%, 3.64%–3.74% and
3.95%–4.05%.
As demand proved to be better than
expected, WHA decided to increase the
issue size from a targeted Bt3bn.
Kasikornbank and Siam Commercial Bank
were joint lead managers and underwriters.
This was the Thai industrial warehousing
and property developer’s third foray into
the baht bond market this year. It raised
Bt3bn in April in tenors of three and five
years, and Bt300m on September 18 in one-
year notes.
WHA is rated A– by Tris.
EQUITY CAPITAL MARKETS
› PRARAM9 PRICES IPO AT TOP OF RANGE
PRARAM9 HOSPITAL is set to raise Bt2.2bn
(US$67m) having priced its IPO at the top of
the Bt10.60–Bt11.60 range.
A total of 187.5m shares were sold.
Around 30 institutional accounts
participated in the transaction.
Praram9 shares will start trading on the
Stock Exchange of Thailand on October 30.
Phatra Securities was the sole bookrunner.
› THAILAND FUTURE FUND OPENS BOOKS
State-owned infrastructure trust THAILAND
FUTURE FUND has opened books for a
Bt40bn–Bt45bn IPO in a 4.75%–5.30% range,
according to a term-sheet.
The international books were to
originally open on October 15 but the fund
decided to open the tranche along with the
domestic books last Friday. Books close on
October 19 and the units will list on the
Stock Exchange of Thailand on October 31.
A total of 4bn–4.5bn units are being sold
in the IPO.
Retail investors, including private
banking and family office clients, are being
sold 1.85bn–2.06bn units, 15 cornerstone
investors 1.34bn, local and foreign
institutions 504m–716m and Thailand’s
Ministry of Finance 310m–357m.
The cornerstone investors are AIA
Company, Muang Thai Life Assurance,
SCB Asset Management, BBL Asset
Management, Land and House Bank,
Kasikorn Asset Management, Bangkok Life
Assurance, Mahidol University, Allianze
Ayudhya Assurance, Thai Life Insurance,
Dhipaya Assurance, CIMB-Principal
Asset Management, Office of Insurance
Commission, Government Pension Fund
and Land and Houses Securities.
Other listed infrastructure funds in
Thailand trade in a 6%–9% yield range.
The trust owns toll-road assets including
Bangkok’s Chalong Rat Expressway and
the elevated Burapha Withi (Bang Na)
Expressway linking the capital to the
eastern economic corridor.
Bank of America Merrill Lynch, Finansa, JP
Morgan, KrungThai Bank and Phatra Securities
are the joint global co-ordinators.
If the IPO goes through, it will be the
biggest in the kingdom since Jasmine
Broadband’s Bt37bn infrastructure fund
listing in 2015. The biggest infrastructure
fund IPO was the Bt47.6bn listing of Digital
Telecommunications Infrastructure Fund,
earlier called True Telecommunications, in
2013.VIETNAM
DEBT CAPITAL MARKETS
› HOAN MY MEDICAL MAKES DEBUTVietnam’s HOAN MY MEDICAL CORP has
completed its debut bond issue, a D2.33trn
(US$100m) transaction with a guarantee
from the Credit Guarantee and Investment
Facility.
The bonds comprised a D930bn five-
year tranche priced at 6.64% and a D1.4trn
seven-year piece priced at 6.74%.
The transaction was 2.5 times subscribed.
CGIF, a multilateral facility established
by the Asian Development Bank and the
Association of Southeast Asian Nationsmembers with China, Japan and Korea, is
rated AA by S&P.
Hoan My is the largest private medical
network in Vietnam by number of beds.
Standard Chartered Vietnam placed the
bonds.SYNDICATED LOANS
› BIDV MAKES QUICK RETURNJOINT STOCK COMMERCIAL BANK FOR INVESTMENT &
DEVELOPMENT OF VIETNAM is returning to the
market for a US$300m financing, two
months after raising a smaller borrowing.
Asian Development Bank is the sole
mandated lead arranger and bookrunner
of the facility, which comprises a US$200m
A loan and a US$100m B loan. ADB will
provide the A loan, and only the B loan is
being syndicated.
The B loan has three and five-year
portions. The interest margins are 110bp
and 160bp over Libor for the three and five-
year portions, respectively, and the average
lives are 2.5 years and 3.15 years.
Mandated lead arrangers committing
US$20m or more will earn a fee of 50bp for
all-ins of 130bp and 173.3bp, respectively,
for the three and five-year tranches, while
lead arrangers committing US$10m–$19m
receive a 40bp fee for all-ins of 126bp and
170.7bp. Arrangers committing less than
US$10m earn a fee of 30bp for all-ins of
122bp and 168bp.
In August, BIDV raised a US$150m three-
year bullet loan. Cathay United Bank was
the MLAB of that financing, which offered
a margin of 117bp over Libor. Banks were
offered a top-level all-in pricing of 137bp
via a 60bp upfront fee.
BIDV is majority-owned by the country’s
government.› STEELMAKER HOA PHAT OBTAINS LOANVietnam’s top steelmaker HOA PHAT GROUP
JOINT STOCK CO has closed a US$200m five-year
financing.
BNP Paribas, Bank of China, HSBC and
Maybank are the lenders on the club deal,
which will be used for general corporate
purposes. BNP Paribas is the coordinator.
The loan is expected to be signed soon.
In March 2017, Hoa Phat signed a D10trn
(US$439m) seven-year loan from VietinBank
to help finance its steel complex project
in the central province of Quang Ngai,
according to a company announcement.
Listed on the Hanoi Stock Exchange in
2007, Hoa Phat is engaged in the trading,
exporting and importing of iron and steel,
and also has businesses in real estate and
animal feed.