the 90-day secondary CP rate and the four-
year TWD IRS, respectively.
YFY’s previous loan market visit was
in December for a NT$5bn five-year
borrowing. Hua Nan, Mega International
Commercial Bank, Taipei Fubon
Commercial Bank and Taiwan Cooperative
were the MLABs of that transaction, which
comprised a NT$5bn revolver tranche A
and a NT$3bn guarantee tranche B. The
borrower can only draw NT$5bn of the
total facility. The margin on tranche A is
60bp over Taibor, with a pre-tax interest
rate floor of 1.7%, while tranche B has an
annual guarantee fee of 68bp.
For full allocations, see http://www.ifrasia.com.
› WPI INCREASES LOAN TO NT$12BN
Electronic products distributor WORLD PEACE
INDUSTRIAL has increased its three-year loan
to NT$12bn-equivalent after attracting
eight lenders in general syndication.
Cathay United Bank, E. Sun Commercial Bank,
Mizuho Bank and MUFG are the original
mandated lead arrangers and bookrunners
of the transaction, while Bank of China,
Taiwan Cooperative Bank and Mega
International Commercial Bank came in
with the same title.
The deal was initially launched with
a NT$10bn-equivalent target. It now
comprises a NT$12bn revolving credit
tranche A, a US$400m revolving credit
tranche B and a NT$8bn guarantee facility
tranche C. The three tranches cannot
exceed a combined NT$12bn-equivalent.
Tranche A has an interest margin of
55bp over Taibor, with a pre-tax interest
rate floor set at 1.7%, while tranche B’s
margin is 85bp over Libor. The borrower
will pay any excess interest rate beyond a
45bp difference between TAIFX and Libor.
Tranche C offers a guarantee fee of 50bp.
Banks joining as MLABs were offered a
top-level upfront fee of 11bp.
Funds are to refinance a NT$7.2bn three-
year revolver completed in October 2015
and for working capital. Bank of Taiwan, E.
Sun, Mizuho and Taipei Fubon Commercial
Bank were the MLABs on that deal, which
comprised a NT dollar tranche and US
dollar portion, and paid a margin of 62bp
over Taibor with a pre-tax interest-rate floor
set at 1.7% for NT dollars and 110bp over
Libor for US dollars.
The Taiwan-listed borrower, established
in 1980, distributes semiconductors,
electronic components and computer
products mainly in Asia.
For full allocations, see http://www.ifrasia.com.› TCC UNIT INCREASES LOAN TO NT$4.2BNTA-HO MARITIME, a unit of conglomerate
Taiwan Cement Corp, has increased its
seven-year debut facility to NT$4.2bn from
the NT$3.5bn target.
CTBC Bank and Mega International
Commercial Bank were the mandated
lead arrangers and bookrunners of the
transaction, which comprises a NT$1.7bn
term loan tranche A and a NT$2.5bn
revolving credit tranche B.
The margin is 58.5bp over Taibor, with
a pre-tax interest rate floor set at 1.7%.Lenders were offered a top-level upfront fee
of 8bp.
Separately, Taiwan Prosperity Chemical
Corp, another TCC unit, raised a NT$4.8bn
five-year refinancing in late September.
CTBC Bank and Mega were also the MLABs
on that deal, which comprised a NT$3bn
term loan tranche A and a NT$1.8bn
revolver tranche B. The interest margin is
58.5bp over Taibor, with a pre-tax interest
rate floor set at 1.7%. Lenders were offered
a top-level upfront fee of 10bp.
For full allocations, see http://www.ifrasia.com.THAILAND
DEBT CAPITAL MARKETS
› MUANGTHAI SELLS IN THREES AND FOURSMUANGTHAI CAPITAL will invite institutional
and high-net-worth investors to subscribe
to three and four-year bonds from October
30 to November 1.
The three-year tranche was priced at par
to yield 4.1% while the four-year tranche is
at 4.3%. Muangthai is looking to raise up to
Bt4bn (US$121.6m) split equally between
the two tranches.
Bangkok Bank, CIMB Thai, Kasikornbank,
Krungthai Bank and Phatra Securities are joint
lead managers and underwriters.
The Thai auto leasing company is rated
BBB by Tris.Wpd may increase wind farm PF
Loans Handful of lenders in for jumbo borrowing of up to NT$80bnGerman wind project developer WPD is likely to
increase its 18-year project financing backing
the first phase of an offshore wind project in
Taiwan’s Yunlin area to NT$80bn (US$2.6bn),
after it sent out a request for proposals for a
facility with a NT$64.7bn deal size in July.
Banks are being invited to join as
underwriters with commitments of NT$7bn
or more. The transaction has attracted a
handful of lenders so far.
Sumitomo Mitsui Banking Corp is the
financial adviser to the deal. The NT$64.7bn
facility comprised a NT$25.88bn commercial
loan tranche and a NT$38.819bn ECA
tranche with insurance cover from EKF,
Hermes and Atradius.
Separately, Wpd will raise another project
financing of about NT$55bn to back thesecond phase of another offshore wind
project in Taiwan’s Guanyin area next year.
On April 30, the country’s Ministry of
Economy awarded 1GW of grid connection
capacity to Wpd for the implementation of
the two projects.
The Yunlin project, to be built eight
kilometres off Yunlin County’s coast, will be
commissioned in 2020/2021 with about 650–
700 MW. The Guanyin project, to be built two
kilometres off Taoyuan County’s coast, will be
commissioned in 2021 with about 350 MW.
Separately, in August, FORMOSA II OWF
sent out a RFP for a NT$60bn PF to back
its offshore wind project in the Miaoli area.
Societe Generale is the coordinator of the
deal, which is expected to comprise a
commercial loan tranche and an exportcredit agency-backed tranche. The tenor is
likely to range from 16 to 18 years. Formosa II
acquired 378MW of grid allocation from the
Ministry of Economic Affairs in April 2018,
and is expected to deliver the project by
2020.
Formosa II is jointly owned by Taiwan’s
Swancor Renewable Energy Co and
Australia’s Macquarie Capital.
Meanwhile, Danish wind energy developer
ORSTED is sounding the market for a PF of up
to NT$100bn to back offshore wind projects
in Changhua county. That deal is expected to
be launched next year.
The projects are part of Taiwan’s ambitious
target to install 5.5GW of offshore wind
power capacity by 2025.
EVELYNN LIN