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

Nan Shan Life Insurance Co. Ltd. #A-# Ratings Outlook Stable

TAIPEI (S&P Global Ratings) Oct. 17, 2017--S&P Global Ratings said today it had affirmed its 'A-' long-term issuer credit rating and financial strength rating on Taiwan-based Nan Shan Life Insurance Co. Ltd. The rating outlook is stable. "We...

German Insurer Nuernberger Insurance Group #A-# Ratings Affirmed, Then Withdrawn At Company#s Request

FRANKFURT (S&P Global Ratings) Oct. 17, 2017--S&P Global Ratings today affirmed its 'A-' long-term insurer financial strength and counterparty credit ratings on Nuernberger Lebensversicherung AG and Nuernberger Allgemeine Versicherungs-AG, the...

San Francisco Redevelopment Authority And Successor Agency Various Ratings Raised One Notch On Improved AV

SAN FRANCISCO (S&P Global Ratings) Oct. 16, 2017--S&P Global Ratings raised its long-term rating to 'AA' from 'AA-' on the San Francisco Redevelopment Agency's (RDA) senior-lien revenue obligations, issued for the merged project areas, and its...

Ratings On Lodging Group Accor On Watch Developing Following Potential Mantra Acquisition And AccorInvest Sale Delay

LONDON (S&P Global Ratings) Oct. 17, 2017--S&P Global Ratings today said it has placed its 'BBB-/A-3' long- and short-term corporate credit ratings on Accor S.A. on CreditWatch with developing implications. We also placed our 'BBB-' issue rating...

China General Nuclear Power Guaranteed Notes Downgraded To #BBB+# And Taken Off UCO On Updated Issue Rating Criteria

HONG KONG (S&P Global Ratings) Oct. 17, 2017--S&P Global Ratings said today that it has reviewed its senior unsecured issue-level ratings for China General Nuclear Power Corp. (CGNPC) that were labeled as "under criteria observation" (UCO) after...

Related Topics