Taiwan Loan House

IFR Asia Awards 2017
3 min read
Evelynn Lin

CTBC Bank maintained its leading role in structured and leveraged loans and did more than its rivals to bring international borrowers to Taiwan in 2017, standing out in an overbanked market.

CTBC leveraged its overseas presence and structuring capability to win 26 mandates at home and abroad during IFR’s review period.

“CTBC Bank adapted to the substantial slowdown in the Asia-Pacific syndicated loan market this year through winning numerous mandates from existing and new clients in diverse markets and sectors, particularly in leveraged finance, corporate acquisitions, specialty finance, Asian FIs, etc,” said Matthew Liaw, executive vice president and head of the global structured finance division.

“There was no lack of highlights and splendour in quite a few transactions we successfully closed.”

CTBC was one of the three leads on a US$986m multi-tranche loan to help fund Chinese conglomerate Citic and US private equity firm Carlyle Group’s US$2.1bn purchase of a majority stake in the China and Hong Kong businesses of US fast food giant McDonald’s, highlighting its skills in international structured financings.

While Taiwanese lenders tightened their credit exposure to mainland China, CTBC picked its spots carefully. It won a rare sole mandate from China Universal Leasing, and syndicated the Rmb2.03bn (US$299m) three-year onshore loan to 16 other banks from Hong Kong, Thailand, India, Europe and Taiwan, underlining CTBC’s strong distribution capability in the China onshore loan market.

CTBC grew its market share in South and South-East Asia, taking advantage of the Taiwanese government’s “New Southbound” initiative targeting emerging markets.

Those overseas wins included a mandate from IndusInd Bank, one of the largest private banks in India, to arrange a US$300m three-year loan. CTBC, together with three other mandated lead arrangers and bookrunners, brought 11 banks into the deal, expanding IndusInd Bank’s investor base in the region.

Elsewhere, CTBC was also one of the seven underwriters on a US$575m five-year loan for Trans Retail Indonesia and pulled in 17 Taiwanese lenders.

CTBC demonstrated its read of market appetite and complex credits on a US$270m subordinated aircraft financing facility for Emirates Airline, the largest airline in the Middle East. CTBC tailored the receivables-backed tranches to appeal to different banks with varying degrees of credit appetites, providing a total financing solution to meet Emirates’ financing needs.

CTBC also kept its focus on its core customers and showed its commitment to financings in its home market. It was one of the leads on the US$540m incremental facility for packaging company HCP Global, and arranged a US$165m five-year recap loan for cable television operator Eastern Broadcasting.

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