Krungsri-BTMU synergy supports SCCCs strategic regional expansion with USD 1.1 billion end-to-end financing in Sri Lanka and Vietnam

Stocks and Financial Services Press Releases Friday March 17, 2017 15:54
Bangkok--17 Mar--Bank of Ayudhya

Krungsri (Bank of Ayudhya PCL and its business units), andThe Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), both of which are members of Mitsubishi UFJ Financial Group (MUFG), one of the world's largest financial groups, have worked hand-in-handin providing end-to-end financial solutions which includes the USD 1.1 billion (approximately THB 38.5 billion) financing arrangement for Siam City Cement Pcl. and its subsidiary for their successful acquisitions in Sri Lanka and, most recently, in Vietnam.

Krungsri and BTMU joined forces in providing financial solutions and services to Siam City Cement Pcl. (SCCC) and its subsidiary, Siam City Concrete Company Limited (SCCO), in bidding and acquiring Holcim assets in Sri Lanka and Vietnam.SCCO and SCCC won the bids for a 98.9524% stake in Holcim (Lanka) Limited (HLL) and a 65% stake in Holcim (Vietnam) Co., Ltd. (HVL), from LafargeHolcim Limited. These transactions are the major milestones for SCCC in fulfilling its strategic aspiration to become a leading regional player and to diversify their businesses from the domestic market.

Mr. Pornsanong Tuchinda, Krungsri Head of Commercial Banking, said that Krungsri and BTMU teams have put collective effort in providing total financial solutions, taking on a leading role in advising, providing, and arranging financing, to ensure that SCCC's expansion plan succeeds.

"Through Krungsri's arrangement, the bridge facilities for the acquisitions of Holcim Sri Lanka and Holcim Vietman were led by BTMU. The success of both transactions demonstrated Krungsri-MUFG's collaborative strengths and signified Krungsri's capabilities to provide total financial solution services to large corporations. At the same time, Krungsri will continue further leveraging MUFG's network in search of opportunities to support Thai companies's regional expansion," Mr. Pornsanong said.

Mr. Siva Mahasandana, Director and Chief Executive Officer of Siam City Cement said,"The Vietnam deal is the largest acquisition transaction ever done by SCCC, and is also the largest cement acquisition outside Thailand by a Thai corporate. The financing has provided flexibility for SCCC to move forward with confidence in concluding the acquisitions and provided a reasonable time frame for the company to put in place an appropriate take-out plan to repay debt at a later stage and to maintain our strong balance sheet."

To support SCCC in bidding and acquiring these assets, Krungsri as SCCC's key relationship bank and BTMU have worked together to provide end-to-end financing solutions to SCCC including:

Krungsri and BTMU jointly provided the USD 1.1 billion (approximately THB 38.5 billion) 1-year financing commitment letter to the seller to support SCCC in bidding for both assets.Krungsri and BTMU jointly provided the dual-currency USD 400 million (approximately THB14 billion) 1-year bridge loan facility for SCCO's acquisition of HLL, Sri Lanka, in August 2016.BTMU, with support from Krungsri, acted as a lead arranger for the THB 18.9 billion bridge loan facility for SCCC in its acquisition of HVL, Vietnam. The loan was oversubscribed and successfully syndicated to 6 local and international banks. Krungsri acted as a financial advisor to SCCC to advise on capital structure and take-out financing alternatives.Krungsri acted as a credit rating advisor to SCCC on the credit rating process and credit rating discussion with a rating company in relation to their acquisitions and capital structure plan.Krungsri also taps into opportunities to further support SCCC in related take-out financing to refinance the above bridge loans.


Latest Press Release

China Hongqiao Group Ltd. Downgraded To #B+# On Management And Governance Placed On CreditWatch Negative

HONG KONG (S&P Global Ratings) March 24, 2017--S&P Global Ratings said today that it had lowered its long-term corporate credit rating on China Hongqiao Group Ltd. to 'B+' from 'BB-'. We also lowered the issue ratings on Hongqiao's outstanding...

Manchester Unity Friendly Society Ratings Affirmed At #B+#, Then Withdrawn At Company#s Request

SYDNEY (S&P Global Ratings) March 24, 2017--S&P Global Ratings Services today said that it has affirmed and withdrawn its 'B+' ratings on Manchester Unity Friendly Society (MUFS) at the request of the company. The negative outlook at the time of...

Photo Release: EXIM Thailand Congratulates Director on New Appointment as Thai Ambassador to India

Mr. Pisit Serewiwattana (third left), President of Export-Import Bank of Thailand (EXIM Thailand), and the Bank's directors and executives recently presented a congratulations gift to Mr. Chutintorn Gongsakdi (third right), EXIM Thailand Director, on the...

DNA Retail Link partners with Tune Insurance to launch KingKongCare, offering protection for smartphones purchased at 36 KingKongPhone shops nationwide

DNA Retail Link Co., Ltd., the operator of "KingKongPhone", has partnered with Tune Insurance to launch "KingKongCare" campaign to provide 90 days of protection against smartphone injuries for the owners and accidental damage such as water damage or...

Belize Long-Term Foreign Currency Rating Raised To #B-# Following Completion Of Debt Res Outlook Is Stable

On March 23, 2017, S&P Global Ratings raised its long-term foreign currency rating on Belize to 'B-' from 'SD' (selective default). In addition, we raised the short-term foreign currency rating to 'B' from 'D'. At the same time, we raised the...

Related Topics