Duferco mandates banks for syndication
Steel trading group Duferco has mandated DBS Bank, ING and Standard Chartered to launch a US$80mn 364-day syndicated revolving credit facility into the syndication market.
Banks have been invited to join at three ticket levels, based on a margin of 200 basis points (bps) a year. Banks deciding to contribute US$15mn or above will receive an all-in of 290bps with the title of mandated lead arranger, Standard Chartered says.
Commitments of US$10mn to US$14mn will receive a 280bps rate with the title of lead arranger, while commitments of US$5mn to US$9mn will receive an all-in of 275bps with the title of arranger.
So far, HSBC and United Overseas Bank have joined the syndication as lead arrangers.
The loan proceeds will be used to finance Duferco Asia’s working capital requirements, inventory and prepayment to suppliers and intercompany sales on open terms, as well as general corporate funding requirements.
The facility is guaranteed by Duferco International Trading Holding and Duferco.
A bank meeting will be held on August 22 to proceed with the syndication.