COUNTRY REPORT NEW ZEALANDEQUITY CAPITAL MARKETS
› UMW AIMING FOR M$1.1BN RIGHTS
UMW HOLDINGS plans to undertake a M$1.1bn
(US$281m) rights offer, subject to the
acquisition of a 50.07% stake in MBM
Resources.
UMW has said in a stock exchange
announcement that the entitlement ratio
and price will be decided later.
The proceeds will be used to repay loans
and meet working capital needs.
Government-linked asset-management
firm Permodalan Nasional is expected to
take up its entitlement as a 57.47% owner
of the company.
Maybank is the adviser on the offer.
UMW is an investment holding company
with interests in the automobile, oil-and-gas
and heavy-equipment businesses.
NEW ZEALAND
DEBT CAPITAL MARKETS
› KIWIBANK TAPS SWISS MARKET
KIWIBANK (A1/A/AA–) issued a SFr150m
(US$211m) 0.25% 5.5-year (October 18 2023)
Eurobond, priced at par, 23bp wide of mid-
swaps, last Thursday, via sole lead UBS.
The pricing was within the 22bp–25bp
indicative range.
Kiwibank is a subsidiary of state-owned
New Zealand Post, the New Zealand
Superannuation Fund and Accident
Compensation Corp.
It has the same ratings from Moody’s and
Fitch as the country’s four major banks, all
of which have Australian parents, while
S&P rates Kiwibank two notches below the
majors’ AA–.
› WESTPAC GOES FOR SIZE
WESTPAC NEW ZEALAND (A1/AA–/AA–) raised
an enlarged NZ$550m (US$398m) from
last Wednesday’s self-led sale of five-year
medium-term notes.
The 3.72% March 23 2023s, which had an
indicative issue size of NZ$100m, were sold
at par, at the wide end of mid-swaps plus
95bp–100bp price guidance range.
The last Kiwi major bank to issue a
domestic five-year MTN was ANZ Bank New
Zealand on August 22 2017.
ANZ also went for size over pricing with
an increased NZ$275m print, priced at the
wide end of mid-swaps plus 105bp–110bp
guidance.
› HSBC THREE-YEAR NETS NZ$300MHSBC, NEW ZEALAND BRANCH, rated Aa3/AA–
(Moody’s/S&P), raised an enlarged NZ$300m
from last Thursday’s sale of three-year
medium-term notes, priced at the tight
end of three-month BKBM plus 75bp–77bp
guidance.
BNZ, CBA and the issuer’s own
syndication team were joint lead managers
on the trade, which had an indicative
minimum size of NZ$100m.
Pricing compares with the 70bp margin
that Kiwi major bank ASB (A1/AA–/AA–)
paid for its NZ$500m three-year floater on
January 16.› INVESTORE SETS TIGHT MARGININVESTORE PROPERTY has set the margin at the
tight end of mid-swaps plus 150bp–170bp
guidance for an unrated NZ$100m 4.40%
six-year retail note offer.
Westpac is arranger and joint lead
manager, with ANZ, Deutsche Craigs and
Forsyth Barr on the offer, which closes on
April 12.SYNDICATED LOANS
› TWO DEGREES SEALS REFINANCINGNew Zealand mobile phone operator TWO
DEGREES MOBILE has refinanced a NZ$200m
(US$144m) loan for two years with existing
lenders.
The two-year loan, which expires in
January 2020, pays an opening interest
margin of 240bp over BKBM and a 30bp
participation fee.
Bank of New Zealand and ING Bank,
Singapore branch, were the mandated lead
arrangers on the latest deal. Private-equity
firm Trilogy International Partners owns
Two Degrees.
For full allocations, see http://www.ifrasia.com.PHILIPPINES
SYNDICATED LOANS
› SMG HIRES TRIO FOR BUY LOANConglomerate SAN MIGUEL has mandated
Mizuho Bank, Standard Chartered and
Sumitomo Mitsui Banking Corp for a US$1.6bn
five-year loan to fund its acquisition of an
operator of power plants in the Philippines.
The three banks have equally
underwritten and pre-funded the loan. Thefacility’s launch into general syndication is
expected in the coming weeks.
San Miguel Group and SMC GLOBAL POWER
HOLDINGS are the borrowers. SMC Global
Power will be the acquirer.
On December 17, the group signed
a share-purchase agreement with AES
Phil Investment and Gen Plus for their
respective 51% and 49% stakes in Masin-
AES, AES Corp’s 100% equity interest in
AES Transpower and AES Phil’s 100% equity
interest in AES Philippine.
Masin-AES owns and operates two
315MW coal-fired power plants, a 335MW
power project expansion unit, known as
Unit 3 and under construction, and a 10MW
battery energy storage plant, all located in
the province of Zambales in Central Luzon.
The transaction gives Masin-AES an
enterprise value of about US$2.4bn, while
the consideration for the entire acquisition
is US$1.9bn, according to a San Miguel
Group filing on February 27. The Philippine
Competition Commission approved the
acquisition a day earlier.
The acquisition facility marks the group’s
return to the loan markets after slightly
over two years. In December 2015, SMC
Global Power raised a US$400m seven-
year dual-tranche loan to finance the
construction of a 300MW coal-fired power
plant in Limay, Bataan province. That loan
pays an interest margin of 325bp over Libor
and attracted nine banks.
In November 2016, SMG pre-paid a
US$1.5bn five-year bullet term loan sealed
in April 2013. The loan paid an all-in
pricing of 259bp, based on an interest
margin of 235bp over Libor and 120bp fee.EQUITY CAPITAL MARKETS
› SMPFC DELAYS FOLLOW-ONSAN MIGUEL PURE FOODS has deferred a planned
Ps100bn–Ps150bn (US$1.9bn–$2.9bn)
follow-on share offer to the second half of
this year from the first.
In a stock exchange announcement,
SMPFC has confirmed as accurate a news
report that the offer may take place in the
third or fourth quarters to give investors “a
chance to digest” multiple stock offerings
in the market.
Metropolitan Bank & Trust (Metrobank)
is currently raising Ps60bn through a rights
offer, while Bank of the Philippine Islands’
Ps50bn rights offer will open in mid April.
Rizal Commercial Banking also plans a
Ps15bn rights offer.
Late last year, parent San Miguel
announced plans to merge its beverages
business into SMPFC (to be renamed San
Miguel Food and Beverage), in a deal that