IFR Magazine – January 20, 2018

LOANS ASIA-PACIFIC

Bank and East West BankûANDûARRANGERSûAREû
Tai Fung Bank, Taiwan Business Bank and Taiwan
Cooperative Bank.
The borrower is Ping An Leasing Hong
Kong Holdings, a fully owned unit of PAIFL,
while the parent is the guarantor.
Part of the proceeds will help the
borrower acquire 25% stakes in some
AFlLIATESûTHATûAREûOWNEDûBYû0!)&,

HONG KONG

HNA EXTENDS SECOND BRIDGE

HNA GROUP has obtained an extension to a
(+BNû53M ûBRIDGEûLOANûTAKENûTOû
back a land purchase in Hong Kong, as
concerns grow about the conglomerate’s
debt burden.
A six-month extension to July 15 has been
negotiated for the bridge loan due on
Monday, said HNA unit Hong Kong
International Investment Group early last
week.
The loan from Industrial Bank backed
HNA’s purchase of a land parcel in Hong
Kong’s Kai Tak area in December 2016 for
HK$5.41bn.
“Since extra time is needed to complete
arrangement of the development loan in
relation to the 6562 land parcel, the bridge
loan is extended for six months,” the group
said in a statement on Monday.
This follows an earlier extension of a
HK$2.8bn portion of another HK$3.5bn one-
year bridge loan that was due last
November. The extended portion comes due
in February. That loan funded the group’s
lRSTûACQUISITIONûOFûAûLANDûPLOTûINû+AIû4AKûFORû
HK$8.84bn in November 2016.
Beside the two extended loans, HNA has
two other bridge facilities – a HK$2.6bn
borrowing due next month and a
(+BNûlNANCINGûDUEûINûUNEûTHISûYEARûnû
used to purchase two more plots of land in
the same area.
HNA is in talks with Hong Kong
developers and real estate funds, including
3UNû(UNGû+AIû0ROPERTIES ûTOûRElNANCEûTHESEû
loans and fund the development of the four
plots.
4HEûAVIATION
TO
lNANCIALûSERVICESû
conglomerate came under growing
lNANCINGûPRESSUREûAFTERû#HINESEûAUTHORITIESû
ORDEREDûMAJORûBANKSûINûUNEûûTOûREVIEWû
their credit exposure to HNA and a handful
of other private enterprises that had been
on aggressive overseas acquisition binges.
Reuters reported on Monday that some
AIRLINESûAFlLIATEDûWITHû(.!ûWEREûDELAYINGû
aircraft lease payments to lessors, and
Export-Import Bank of China, a long-term
lNANCIERûOFûTHEûGROUP ûHADûFORMEDûAûTEAMûTOû
handle the conglomerate’s liquidity issues.

BEIJINGCAP LIFTS LOAN TO HK$3.2bn

3TATE

OWNEDû"EIJINGû#APITALûHASûINCREASEDûITSû

latest three-year term loan to HK$3.2bn

53M    ûFOLLOWINGûCOMMITMENTSûFROMû

13 banks in general syndication.

Bank of China (Hong Kong) and China

Construction Bank (Asia) were the mandated lead

arrangers and bookrunners of the loan, which

was launched in late November at HK$2bn.

4HEYûWEREûJOINEDûBYûMANDATEDûLEADû

arrangers Agricultural Bank of China Hong Kong

branch, Bank of Communications Hong Kong

branch and Nanyang Commercial Bank.

Lead arrangers are China Everbright Bank

Hong Kong branch and Chiyu Banking Corp.

Arrangers are Taiwan Cooperative Bank Hong

Kong branch, Bank of Taiwan Hong Kong branch,

Chang Hwa Commercial Bank Hong Kong branch,

E.Sun Commercial Bank Hong Kong branch, Hua

Nan Commercial Bank Hong Kong branch, Land

Bank of Taiwan Hong Kong branch, Taiwan

Business Bank Hong Kong branch and KDB (Asia).

The bullet loan offered top-level all-in

pricing of 165bp, via an interest margin of

150bp over Hibor.

BEIJING CAPITAL (HONG KONG) is the borrower

ANDû"EIJINGû#APITALûISûTHEûGUARANTOR

3HANGHAI

LISTEDû"EIJINGû#APITALûISûENGAGEDû

in water supply, environmental remediation

and solid-waste treatment.

INDIA

TATA STEEL NAMES 21 FOR REFI

TATA STEEL has selected banks as leads for its

plans to raise loans and issue bonds. It has

hired 21 lenders for a six-year loan of

US$2.16bn and 16 banks for an offering of

US dollar bonds.

The 21 are ANZ, Axis Bank, Bank of America

Merrill Lynch, Barclays, BNP Paribas, Citigroup,

Credit Agricole, DBS Bank, Deutsche Bank, First

Abu Dhabi Bank, HSBC, ICICI Bank, ING Bank, JP

Morgan, Kotak Mahindra, MUFG, Societe

Generale, Standard Chartered, State Bank of

India, SMBC and Yes Bank.

4HEûûJOINTûLEADûMANAGERSûANDû

bookrunners on the bonds are ANZ, BAML,

Barclays, BNP, Citigroup, Credit Agricole,

DBS, Deutsche, FAB, HSBC, ING, JPM, Morgan

Stanley, SG, SMBC Nikko, and StanChart.

The multinational steel-maker is meeting

investors in Dubai, London, Singapore and

Hong Kong, for the bonds, starting Monday.

The proposed notes will be issued in the

NAMEûOFû!"*!û)NVESTMENTûWITHûTHEûBENElTû

of a letter of comfort from Tata Steel.

Meanwhile, the US$2.16bn loan will have

ANûAVERAGEûLIFEûOFûlVEûYEARSûANDûISûEXPECTEDû

to pay all-in pricing of 200bp–250bp.

.AT3TEELû!SIAû3INGAPORE    ûWILLûBEûTHEû

borrower.

4HEûFACILITYûWILLûRElNANCEûSHORT

TERMSû

loans at one of Tata Steel’s units in

Singapore. The size could be reduced if Tata

Steel succeeds with the bonds.

The dual fundraising move follows the

proposed merger of the European

operations of Tata Steel with Germany’s

Thyssenkrupp Steel announced in

September.

4HEûBORROWINGûWILLûRElNANCEûSHORT

TERMû

loans raised for Tata Steel’s Singapore units,

which were on-lent to its European

operations for working capital purposes.

One loan of about US$400m was taken in

the name of NatSteel Asia. Another unit, T S

Global Procurement (formerly Tata Steel

'LOBALû0ROCUREMENT  ûWASûALSOûTHEûBORROWERû

on other short-term loans.

INDUSIND GOES FOR US$500m

Mumbai-based INDUSIND BANKûHASûNAMEDûlVEû

leads for a three-year facility of US$500m,

RETURNINGûFORûITSûBIGGESTûLOANûlVEûMONTHSû

after its last visit.

Barclays, Citigroup, HSBC, Standard Chartered

and State Bank of India are the mandated lead

arrangers and bookrunners on the loan,

which is expected to be launched shortly.

IndusInd last tapped the market in August

for a US$300m three-year loan, for which it

drew 11 lenders in general syndication.

That facility offered top-level all-in pricing

OFûBPûBASEDûONûANûINTERESTûMARGINûOFû

90bp over Libor.

HPCL SENDS REFINANCING RFP

HINDUSTAN PETROLEUM CORP has sent out a

request for proposals for a US$300m

RElNANCINGûRETURNINGûTOûTHEûMARKETûLESSû

than three months after its last visit.

The Indian state-owned oil company is

open to tenors of two to three years.

In November, HPCL took the bilateral

ROUTEûFORûAû53MûONE

YEARûlNANCINGû

MUFG provided that loan.

PFC IN GENERAL SYNDICATION

POWER FINANCE CORPORATION has launched a

53MûlVE

YEARûBULLETûLOANûINTOûGENERALû

syndication with MUFG, Mizuho Bank and

State Bank of India as mandated lead arrangers

and bookrunners.

The loan, prefunded in December, pays an

INTERESTûMARGINûOFûBPûANDûHASûAûREMAININGû

life of 4.5 years.

Lenders receive top-level all-in pricing of

100bp and the lead arranger title for US$20m

or more, via a participation fee of 135bp, an

ALL

INûOFûBPûANDûTHEûARRANGERûTITLEûFORû

53MnMûVIAûAûFEEûOFûBPûORûANû

all-in of 95bp and the lead manager title for

US$5m–$9m, via a fee of 112.5bp.