Singapore Loan House

IFR Asia Awards 2013
2 min read
Asia
Prakash Chakravarti,

Loan volume in Singapore hit a respectable US$30bn during the review period, but it was a handful of big-ticket loans and new-money deals to back listings of real estate investment trusts that allowed DBS Bank to shine over its peers.

“DBS continues to provide leadership and stability to Singapore’s loan market. We are involved at the highest level in most prominent deals in Singapore, entrenching our position as the lender that companies can rely on,” said Boey Yin Chong, head of syndicated finance.

DBS was the sole adviser and lead on a S$2.6bn (US$2.1bn) refinancing for Senoko Energy. Building on its previous mandate from energy firm YTL Seraya in 2012, DBS used a simpler financing structure and longer tenor for Senoko, removing project-financing cash sweeps and waterfall mechanisms to give it flexibility ahead of competition from other generating firms.

DBS also advised on a S$1.15bn financing for Universal Group Holdings, Parkway Pantai’s S$750m deal, Mapletree Greater China Commercial Trust’s HK$12.15bn facility and SPH REIT’s S$975m loan, combining its lending and equity expertise to stay dominant in Singapore’s REIT market.

In addition to Mapletree Greater China’s jumbo HK$12.15bn facility, DBS also supported a S$461.8m revolving credit for Mapletree Commercial Trust Management. It provided a full financing package, including an equity fundraising of roughly S$225m.

DBS introduced new borrowers to the Singapore market, including US-listed DRAM maker Micron Semiconductor’s Asian unit for a loan of US$312m and European aircraft-leasing firm Aercap, which raised US$180m in its debut deal in Singapore.

The bank was also top financier for global and Asian commodity firms borrowing in the city state, leading more than 10 deals, which introduced new lenders to diversify commodity firms banking relationships.

DBS flexed its muscles when it had to, leading the most eye-catching event-driven deal for a Singaporean company.

Thai Beverage’s acquisition of F&N Group was Singapore’s largest acquisition, the result of a five-month-long competition that led to an unprecedented auction of shares. DBS played an integral advisory role throughout talks between the bidders before Thai Beverage emerged victorious.

DBS provided an unflinching underwriting commitment, along with UOB, to help Thai Beverage seal the deal. The S$9.3bn loan backing the acquisition was by far the biggest of the year in Singapore, and left rivals disappointed that they had no chance to participate.

“Not that many banks can take on a deal of that size. Our advisory and structuring capabilities unlocked significant value for F&N,” said Boey.

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