China Rongsheng Inks Another Massive Credit Facility

On Monday, Hong Kong listed China Rongsheng Heavy Industries Group Holdings signed a strategic collaboration agreement worth RMB 30 billion (USD 4.7 billion) with China Development Bank in the Chinese city of Nanjing. A large chunk of the facility will go towards its offshore engineering division. We note that Rongsheng has signed many similar corporative agreements with numerous Chinese lenders including China Exim, Bank of China, China Everbright Bank, China CITIC Bank and Agricultural Bank of China since August 2010, of at least total of over RMB 129.5 billion (USD 20.2 billion!).

We also have more details on Rongsheng’s recently completed USD 220 million offshore syndicated loan. Sole book runner Credit Agricole took up the biggest slice in the loan of USD 40 million while four lead arrangers Societe Generale, Aozora Asia Pacific Finance, Bank of East Asia and Bank of Tokyo-Mitsubishi UFJ committed USD 30 million each. Cathay United Bank chipped in USD 20 million. Italian bank Banca Monte Dei Paschi di Siena, Taiwanese lenders Chang Hwa Commercial Bank and Hua Nan Commercial Bank, as well as Metropolitan Bank and Trust in Philippines rounded up the syndication and contributed USD 10 million each. The loan offers the lenders a margin of LIBOR plus 130 basis points and is guaranteed by China Exim Bank.

Taiwanese Lenders Back TMT

Moving on to bank debt, F Elephant, a subsidiary of Taiwan Maritime Transportation (“TMT”), has concluded a USD 81 million seven-year term loan earlier this month via four mandated lead arrangers: Cathay United Bank, Chang Hwa Commercial Bank, First Commercial Bank and Yuanta Commercial Bank. Four other domestic lenders, King’s Town Bank, Shanghai Commercial & Savings Bank, Taishin International Bank and Taiwan Business Bank also participated in this transaction, which was said to be priced at around 230 bps over LIBOR with a commitment fee of 50 bps.

As a private company owned by the enigmatic Nobu Su, we note that TMT has been extremely successful in tapping finance from domestic lenders. It was not too long ago in November when two other subsidiaries of TMT, D Whale Corp and E Whale Corp, secured seven year term loans of USD 184 million from 18 Taiwanese banks. The ship financing loan facilities were priced at 210 bps over LIBOR at that time.

Vietnamese Banks Finance USD 227 million FPSO

During the end of July, a syndicate of six Vietnamese banks, led by PetroVietnam Finance Corporation and Vietnam Commercial Bank for Industry and Trade (“VietinBank”), provided PV KEEZ USD 227 million for the financing of an FPSO for the Chim Sao field in offshore Vietnam. This six year project financing transaction also saw the participation of Cathay United Bank, Indovina Bank, Shinhanvian Bank and SeA Bank.

The deal is particularly significant because it is the first syndicated US dollar facility provided by Vietnamese banks to an overseas company. PV KEEZ is a Singapore-based special purpose joint venture owned by PetroVietnam Transportation Corporation, EOC Limited, Ezra Holdings and KSI Production. Continue Reading

A Noble Breed

Last week, our sister publication Freshly Minted reported on Maersk’s successful EUR 750 million (USD 1.3 billion) five-year bond. This was the shipping conglomerate’s first bond issuance, following a recent equity offering of USD 1.7 billion. In Asia, commodity trading house Noble Group has likewise found tremendous success in raising funds, suggesting that investors and bankers are getting warmed up to investing cash again. Continue Reading