Nedbank term loan draws in new lenders
Nedbank, acting through its London branch, has successfully closed syndication of a US$450mn three-year, senior unsecured term loan facility.
The facility was launched two months ago, with the bank seeking US$350mn from existing relationships and a select group of Asian lenders to replace a maturing US$210mn facility put in place in May 2014. A total of 16 institutions joined the facility, including eight new lenders. The deal was significantly oversubscribed, with Nedbank electing to increase the final size to US$450mn.
The loan will be used for general corporate purposes, pays a margin of 130 basis points (bps) at ratings of Baa3/BBB- equivalent and 155bps at Ba1/BB+ equivalent, above Libor. It will be repaid in full at the end of the three-year tenor.
“Despite the wider political backdrop and market volatility in South Africa, the facility generated substantial interest and support from banks based across Emea and Asia,” reads a statement from the bank. “The resulting deal is a testament to Nedbank’s deep relationships and strong appeal to a diverse spectrum of lenders.”
Bank of America Merrill Lynch (BofAML) and Wells Fargo Bank acted as joint co-ordinators and bookrunners, with BofAML as documentation agent and Wells Fargo (London branch) as facility agent.
Mandated lead arrangers on the facility are: Bank of China (London and Singapore branches), Bank of Taiwan, Commerzbank, HSBC, Industrial and Commercial Bank of China, JP Morgan, Standard Chartered, State Bank of India and the Bank of Tokyo-Mitsubishi UFJ.
Arrangers are BayernLB, Doha Bank, Hua Nan Commercial Bank and Taiwan Business Bank.take me back