Norton Rose Fulbright advises on US$1.5 billion syndicated loan facility

Global law firm Norton Rose Fulbright has advised The Hongkong and Shanghai Banking Corporation Limited (‘HSBC’), as mandated lead arranger and bookrunner on a US$1.5 billion syndicated loan facility for Wilmar International Limited.

Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today one of Asia’s leading agribusiness groups. It is ranked amongst the largest listed companies by market capitalisation on the Singapore Exchange.

The facility, comprising a five-year revolving credit facility of US$1.2 billion and a five-year term loan of US$300 million, has been upsized from an initial US$840 million to US$1.5 billion. This oversubscription is testament to the confidence the market has in the Wilmar group of companies.

The facility is arranged by DBS Bank Ltd, HSBC, Mizuho Bank, Ltd., MUFG Bank, Ltd., Oversea-Chinese Banking Corporation Limited, Sumitomo Mitsui Banking Corporation, Singapore Branch and United Overseas Bank Limited, each acting as a mandated lead arranger and bookrunner (‘MLAB). A total of 41 Lenders, including the 7 MLABs and 34 participating lenders, are supporting the facility.

The facility includes a ‘hardwired’ rate-switch mechanism incorporated into the documentation, wherein upon the demise of USD LIBOR, the base rate for the facility automatically switches to USD SOFR (Secured Overnight Financing Rate). SOFR is expected to become the dominant USD benchmark against which floating-rate facilities are priced.

Head of Singapore partner Yu-En Ong, who led the Norton Rose Fulbright advising on the deal, commented:

“We are delighted to advise HSBC on this complex jumbo financing during a time when rate determination has been in a state of flux.”

The Singapore team also included senior associate Zhenning Kong and knowledge counsel Pooja Balani.