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Overview

Agricultural Bank of China contributes $50 million USD to a $1.5 billion USD syndicated loan to ADNOC Drilling Company for unspecified purposes (Linked to Record ID#101392 and #101393)

Commitments (Constant USD, 2023)$50,000,000
Commitment Year•2023Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesOverseas Jurisdiction•United Arab EmiratesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 30, 2023
Last repayment (originally scheduled)
Feb 13, 2024

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Agricultural Bank of China (ABC)

Cofinancing agencies

Private Sector

  • Bank of America Merrill Lynch International Limited
  • Mizuho Bank, Ltd.
  • Norinchukin Bank (Nochu Bank)
  • SGBTCI S.A.
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • UniCredit Bank Austria AG (formerly Bank Austria-Creditanstalt (BA-CA))

State-owned Banks

  • Abu Dhabi Commercial Bank PJSC (ADCB)
  • First Abu Dhabi Bank PJSC (FAB)
  • National Bank of Ras Al-Khaimah P.J.S.C. (RAKBANK)
  • State Bank of India (SBI)

Receiving agencies

State-owned companies

  • ADNOC Drilling Company P.J.S.C.

Loan description

Agricultural Bank of China contributes to a USD $1.5 billion syndicated loan to ADNOC Drilling Company for unspecified purposes in the UAE in 2023

Interest rate (t₀)•6.11771%Interest type•Variable Interest RateLoan tenor•1-month rateMaturity•0.625 years

Narrative

Full Description

Project narrative

Between January 1 and June 30, 2023, the DIFC Branch of the Agricultural Bank of China (ABC) joined a $1,500,00,000 USD syndicated loan agreement with ADNOC Drilling Company P.J.S.C. — an Abu Dhabi, United Arab Emirates-headquartered national drilling company, the Middle East's largest by rig fleet size that is majority-owned by Emirati state-owned Abu Dhabi National Oil Company (ADNOC) — for unspecified purposes. The loan carried a maturity period of five years with a bullet repayment profile, a final maturity date in November 2023, and an interest rate of one-month LIBOR plus a fixed margin of 0.9%. ABC joined with a $50,000,000 USD commitment, taking that amount from the $155,000,000 USD contribution of Abu Dhabi Commercial Bank (ADCB). Record ID#101379 captures ABC's contribution. In addition to ABC, the following lenders contributed the respective amounts to the loan syndicate (contributions as of June 30, 2023): First Abu Dhabi Bank (FAB) ($375,000,000 USD), Sumitomo Mitsui Banking Corporation (SMBC) ($225,000,000 USD), the National Bank of Ras Al-Khaimah (RAKBANK) ($170,000,000 USD), the Norinchukin Bank ($150,000,000 USD), the State Bank of India (SBI) ($125,000,000 USD), ADCB ($105,000,000 USD), Bank of America Merrill Lynch International Limited (BAML) ($75,000,000 USD), Mizuho Bank ($75,000,000 USD), SGBTCI S.A. ($75,000,000 USD), and UniCredit Bank Austria AG ($75,000,000 USD). On November 1, 2023, a syndicate of nine banks — including the Dubai Branch of the Bank of China (BOC) and the Dubai (DIFC) Branch of the Industrial and Commercial Bank of China (ICBC) — entered into a $1,500,000,000 USD syndicated term loan agreement with ADNOC Drilling Company P.J.S.C. for refinancing purposes. This loan (referred to as 'Facility D') carried a maturity period of four years, a final maturity date of November 2027, and an interest rate of Term SOFR plus a margin of 0.95%. The proceeds of this loan were used by the borrower to repay the existing $1.5 billion USD syndicated term loan. ICBC and BOC each contributed $200 million USD to the loan syndicate. Record ID#101392 captures BOC's contribution. Record ID#101393 captures ICBC's contribution.

Staff comments

1. If ABC joined the loan in January 2023, its contribution would have a maturity period of no more than 11 months (assuming a January 1, 2023 signing date and a November 30, 2023 maturity date). If ABC joined the loan in late June 2023, its contribution would have a maturity period of no less than 4 months (assuming a June 30, 2023 signing date and a November 1, 2023 maturity date). For the time being, to estimate the maturity period, AidData has taken the average of these two extremes (0.625 years) and have coded it as the maturity period of this record.