Taiwan Loan House: CTBC Bank

IFR Asia Awards 2020
3 min read
Aileen Chuang

Unwavering position

CTBC Bank did not miss a beat in the Taiwanese loan market in 2020, cementing its leading position with senior roles on deals from acquisition financings to wind farm projects.

It added to its financial advisory role on large offshore wind projects, bringing five other Taiwanese lenders into a NT$75bn (US$2.7bn) 18-year loan for Danish renewable energy company Orsted and arranging a NT$40bn financing for a joint venture between China Steel and Copenhagen Infrastructure Partners.

In leveraged finance, it showcased its capabilities as the sole mandated lead arranger and bookrunner on a NT$11.5bn financing for Taiwan Optical Platform Group’s acquisition of cable TV operator Te Rui, underwriting the deal with nine other Taiwanese lenders and one Hong Kong bank.

Kingston Technology Corp, the world’s largest independent memory products maker, chose CTBC as the sole facility agent for its US$600m debut loan via its Ireland-based subsidiary. Completed within two months, CTBC brought five Taiwanese banks into the deal.

CTBC was also one of two lead arrangers on a NT$37.5bn refinancing for LCD maker Innolux Corp, pulling in 15 Taiwanese lenders.

“CTBC Bank provided tailor-made package solutions to serve client needs. We lead-arranged major offshore wind project finance, the local supply chain financing, and local and cross-border acquisition finance, including leveraged buyout, transactions in Taiwan,” said Mathew Liaw, head of CTBC’s global structured finance division. “Despite the pandemic, the bank was relatively active in the regional market, especially in the financial institution sector.”

CTBC continued to expand its presence in South-East Asia, taking more senior roles on several notable deals.

The bank won the “Taiwan coordinator” title on a US$1.2bn multi-tranche refinancing for Swiss energy trader Mercuria, completed in November 2019, helping the frequent borrower add Taiwanese lenders to its regular Singapore borrowing.

CTBC was also among the leads on an increased US$700m loan for Indonesian financial services company Sarana Multi Infrastruktur, pulling in 11 Taiwanese lenders despite the general risk-averse attitude in August.

It also participated in a complex aircraft financing as the only Taiwanese bank to provide direct secured lending with a hedging instrument for Singapore Airlines, joining seven other top-tier international banks in a 10-year club deal of around US$1bn in euros and yen.

CTBC completed 49 loans as MLAB during IFR’s review period, winning repeat mandates from Taiwanese top-tier borrowers while drawing overseas clients to Taiwan’s liquid loan market.

Its repeat mandates over the year included a US$340m three-year facility for CMB International Leasing Management and a Rmb1.805bn (US$255m) three-year loan for China Universal Leasing.

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