The Asset
January 2010

Joint bookrunners and mandated lead arrangers: Agricultural Bank of China, Bank of Tokyo-Mitsubishi UFJ, China Development Bank, Commerzbank, DBS Bank, HSBC, ING Bank, J.P. Morgan, Royal Bank of Scotland, Société Générale Corporate and Investment Banking, Standard Chartered Bank

In the most widely distributed syndicated loan from Asia in over a decade, the global supply chain manager of agricultural, industrial and energy products Noble Group, completed in October its three-tranche revolving credit facilities totalling US$2.4 billion. This is the largest completed US dollar syndicated corporate loan in the Asia-Pacific region in 2009, attracting over- whelming support from 63 banks across the globe. The transaction achieved significant oversubscription at general syndication, enabling Noble to upsize the amount from the initial US$1.8 billion.

The transaction was structured as an amendment and restatement of the existing US$1.2 billion facility dated July 2007 in order to maximize liquidity and to prevent leakage in bank participations. Many existing banks, which could not extend their exposure, remained in the facility at the existing terms via the first tranche, while new banks were solicited through the other tranches. The first tranche was a US$645.2 million revolving facility for 364 days, the second tranche was a US$877.4 million facility for two years and the third tranche was a similar US$877.4 million facility for three years.

The bookrunners took full advantage of Noble’s upgrade in the credit rating to investment grade by both Moody’s and Standard & Poor’s, as well as the significant equity investment by Chinese sovereign wealth fund, China Investment Corporation, which were announced before the closing of the facilities, in creating significant momentum into the transaction.

Noble wanted as many banks from across five continents to join in the transaction, positioning itself with the necessary financial support to continue its global growth strategy. And, indeed, the final syndicate comprises a diverse group of financial institutions from 26 different countries/regions, and 32 of the 63 bank participants represent new relationships for Noble.