6 banks fund international exchange in Asia Pacific

The funding for the proposed ASX-SGX combination comprises term loans of $3.8 billion and A$750 million.

According to Singapore Exchange, the proposed combination brings together complementary businesses of two successful exchanges in Asian time zone to create the international exchange in Asia Pacific.

The funding is to be made available by well-established banks - Australia and New Zealand Banking Group Limited, The bank of Tokyo-Mitsubishi UFJ, Ltd., Singapore Branch, DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited, United Overseas Bank Limited and National Australia Bank Limited.

Australia and New Zealand Banking Group Limited has been appointed as the co-ordinator in relation to these term loans.

Said Mr Magnus Bocker, CEO of Singapore Exchange, “We thank the six banks for their confidence in the proposed combination and their support towards creating the leading Asia Pacific exchange. This transaction has attracted significant interest from the loans market and we are pleased to have achieved competitive pricing consistent with our good credit standing.”

The term loans are in tranches with tenors of three years and five years. The interest payable for the S$ term loan will be based on Singapore dollar swap offer rate plus a margin of 0.55% per annum for the 3-year tranche and 0.72% per annum for the 5-year tranche. The interest for the A$ term loan is based on the relevant Australian bank bill swap bid rate plus a margin of 0.75% per annum for the 3-year tranche and 1.01% per annum for the 5-year tranche.