BASIS POINT-Bank bids compete for PFC loan

Last Updated: Thu, Oct 25, 2012 10:10 hrs

HONG KONG, Oct 25 (Basis Point) - Four bids were submitted in response to Power Finance Corp Ltd's request for proposals for a four-year term loan and banks are awaiting news of a mandate, according to sources.

The bids said to have been submitted were: a joint bid from ANZ and Bank of America Merrill Lynch; a joint bid from Bank of Tokyo-Mitsubishi UFJ, Chinatrust Commercial Bank and Mizuho Corporate Bank; a joint bid from State Bank of India and Sumitomo Mitsui Banking Corp; and a sole bid from Bank of India.

The sole bid was said to have had the highest pricing, while the three joint bids were said to be fairly closely priced, according to a source. The borrower is said to have restricted bidding groups to a maximum of three banks.

As previously reported, PFC had sent out a request for proposals for a US$100m term loan with a US$150m greenshoe option.

The four-year loan would have an average life of three years.

In July, the borrower sealed an upsized US$250m three-year loan which paid a top-level all-in of 220bp via a margin of 175bp over Libor. Mandated lead arrangers and bookrunners BTMU and Mizuho were joined by 15 lenders.

Bombay Stock Exchange-listed PFC onlends to power utilities and power sector entities. (Reporting by Maggie Chen and Sandra Tsui; Editing by Gavin Stafford)

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