PAPUA NEW GUINEA
DEBT CAPITAL MARKETS
› PNG COURTS GLOBAL INVESTORS
THE INDEPENDENT STATE OF PAPUA NEW GUINEA,
rated B2/B (Moody’s/S&P), has mandated
Credit Suisse as the global coordinator and
Credit Suisse and Citigroup as joint lead
managers and bookrunners to arrange a
series of fixed income investor meetings in
Singapore, Hong Kong, London and the US.
Meetings started last Wednesday.
Five and/or 10-year 144A/Reg S notes will
follow, subject to market conditions, and are
expected to be rated on par with the issuer.
PHILIPPINES
DEBT CAPITAL MARKETS
› UNION BANK GETS BOARD NOD FOR BONDSUNION BANK OF THE PHILIPPINES has won board
approval to raise up to Ps20bn (US$374m)
from bonds or commercial paper in
multiple tranches, according to a filing on
the Philippine Stock Exchange.
UBP is the third lender to announce
plans to sell bonds since the central bank
dropped a rule requiring prior approval for
debt sales on August 9.
Last week, BDO Unibank approved the
establishment of a bond programme of up
to Ps100bn.
On August 24, Philippine National
Bank received board approval to raise
up to Ps20bn from bonds in one or more
tranches.“Bonds can provide a flexible alternative
to sourcing funds from the public, besides
traditional deposits,” said Jonathan Ravela,
market strategist at BDO Unibank in an
interview with IFR last month.EQUITY CAPITAL MARKETS
› H20 PLANS FOLLOW-ON OFFERPHILIPPINE H2O VENTURES is planning to launch
an up to Ps16bn (US$299m) follow-on
offering in November.
In a draft prospectus filed with the
Securities and Exchange Commission,
the company said it plans to sell 1.78bn
primary shares at an indicative price of up
to Ps9. There is an over-allotment option of
267.9m shares.Top bookrunners of all Philippine peso bonds
1/1/18 – 31/8/18
Amount
Name Issues Ps(m) %
1 BDO Unibank 8 30,440.5 21.6
2 China Bk Capital Corp 8 23,515.5 16.7
3 BPI 6 21,107.1 15.0
4 HSBC 2 13,140.5 9.3
5 Philippine National 3 10,416.7 7.4
6 Standard Chartered 3 8,747.6 6.2
7 ING 3 8,738.9 6.2
8 Metropolitan B&T 2 6,190.5 4.4
9 Deutsche 1 4,100.0 2.9
10 JP Morgan 2 3,696.5 2.6
Total 21 141,092.0
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS10
Top bookrunners of Philippines syndicated loans
1/1/18 – 31/8/18
Amount
Name Deals US$(m) %
1* ANZ 1 60.0 20.0
1* First Abu Dhabi Bank 1 60.0 20.0
1* Commerzbank 1 60.0 20.0
1* CTBC Financial 1 60.0 20.0
1* Standard Chartered 1 60.0 20.0
Total 1 300.0
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S15bPhilippines global equity and equity-related
1/1/18 – 31/8/18
Amount
Name Issues US$(m) %
1 UBS 2 729.3 22.8
2 Metropolitan B&T 2 604.7 18.9
3 BPI 3 560.2 17.5
4* Deutsche 1 390.4 12.2
4* JP Morgan 1 390.4 12.2
4* Goldman Sachs 1 390.4 12.2
7 Maybank 1 76.6 2.4
8 BDO Unibank 1 27.9 0.9
9 RCBC 1 14.9 0.5
10 Abacus Capital & Inv 1 9.7 0.3
Total 9 3,194.3Source: Thomson ReutersTwo Degrees Mobile redials for NZ$250m refi
Loans Mobile phone operator returns within six monthsNew Zealand mobile phone operator TWO
DEGREES MOBILE (2degrees) is back in the
market for a NZ$250m (US$165m) three-
year loan, barely six months after completing
a smaller, shorter-tenor financing.
Mandated lead arranger and bookrunner
ING Bank underwrote the bullet loan, which
will go toward refinancing and funding
capital expenditure requirements.
There is also an uncommitted NZ$35m
accordion that could be used to finance
future capex, subject to an improvement in
Ebitda.
Bank of New Zealand has joined the deal
as MLA. The two lenders pre-funded the
facility on July 31 and launched it into general
syndication in August.The facility pays an opening interest
margin of 330bp over BKBM based on
opening leverage of 2x. The margins adjust to
380bp for leverage greater than 2.5x, 280bp
for leverage of 1.5x–2.0x and 240bp for lower
than 1.5x. The margin stays flat at 330bp as
long as leverage is between 2.0x–2.5x.
Banks are being invited to join at three
levels: MLAs taking NZ$35m or more earn
fees of 100bp for a top-level all-in pricing
of 363.33bp. Lead arrangers committing
NZ$25m–$35m receive 85bp for an all-in
of 358.33bp, while arrangers coming in for
NZ$15m–$25m are offered 65bp for an all-in
of 351.67bp.
The deadline for responses is end of
September.Funds will refinance debt, including a
NZ$200m two-year loan that 2degrees
closed in March. BNZ and ING were the MLAs
of the facility, which paid an opening margin
of 240bp over BKBM and a 30bp fee. Three
other banks joined.
Sources familiar with the situation said the
March loan was not a permanent financing
solution, which is why 2degrees is back after
a few months for the bigger borrowing.
Toronto-listed private equity firm Trilogy
International Partners owns 73.2% of
2degrees. In June 2008, it acquired a 26%
stake in 2degrees, then called New Zealand
Communications, and doubled it to 56% just
over a year later.
PRAKASH CHAKRAVARTI