Narrative
Full Description
Project narrative
On October 24, 2021, a syndicate of banks entered into a $1,250,000,000 USD syndicated Terms and Revolving Facilities 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 general corporate purposes. These facilities were divided into a $750,000,000 USD revolving loan facility (known as 'Facility A') and a $500,000,000 USD term loan facility (known as 'Facility B'). These facilities carried a maturity period of four years, a final maturity date of October 24, 2025, and an interest rate of three-month LIBOR plus a fixed margin of 0.8%. The term loan facility carried an utilization expiration date of October 24, 2023. As of June 30, 2023, no draw down had been made under either of the tranches of this $1.25 billion USD syndicated facilities agreement. Then, between July 1, 2023 and September 30, 2023, the DIFC Branch and the Agricultural Bank of China (ABC) and the DIFC Branch of China Construction Bank Corporation (CCB) joined the $1.25 billion USD syndicated Terms and Revolving Facilities Agreement. ABC DIFC Branch joined with a $50,000,000 USD commitment, $30,000,000 USD to the $750 million USD revolving loan tranche (captured via Record ID#101394) and $20,000,000 USD to the $500 million USD term loan tranche (captured via Record ID#101395). CCB DIFC Branch joined with a $80,000,000 USD commitment, $60,000,000 USD to the $750 million USD revolving loan tranche (captured via Record ID#101396) and $20,000,000 USD to the $500 million USD term loan tranche (captured via Record ID#101397). In addition to ABC and CCB, the following lenders contributed the respective amounts to the loan syndicate (contributions as of September 30, 2023): Abu Dhabi Commercial Bank PJSC (ADCB) ($165,000,000 USD to revolving tranche and $110,000,000 USD to term tranche), First Abu Dhabi Bank (FAB) ($165,000,000 USD to revolving tranche and $110,000,000 USD to term tranche), Emirates NBD Bank PJSC ($70,000,000 USD to revolving tranche and $140,000,000 USD to term tranche), State Bank of India (SBI) ($60,000,000 USD to revolving tranche and $40,000,000 USD to term tranche), Bank of America Europe Designated Activity Company ($60,000,000 USD to revolving tranche and $40,000,000 USD to term tranche), Goldman Sachs Bank USA ($50,000,000 USD to revolving tranche), JPMorgan Chase Bank N.A. ($30,000,000 USD to revolving tranche), United Arab Bank P.J.S.C. ($30,000,000 USD to revolving tranche), the National Bank of Ras Al-Khaimah (RAKBANK) ($30,000,000 USD to revolving tranche), and the Dubai Branch of Banque MISR ($20,000,000 USD to term tranche). As of December 31, 2023, the $750 million USD revolving loan tranche had been unutilized and $500 million USD had been drawn down under the $500 million USD term loan tranche. Furthermore, the interest rate was adjusted, changing the benchmark rate from 3-month LIBOR to Term SOFR for (at minimum) Facility B.
Staff comments
1. As the entirety of $500 million USD term loan tranche was fully drawn down/disbursed and the purpose of the loan was general corporate purposes, AidData has coded the project_status field for the contributions to it as Completion. 2. If ABC and CCB joined the loan in July 2023, its contribution would have a maturity period of approximately 2.318 years (assuming a July 1, 2023 signing date). If ABC and CCB joined the loan in late September its contribution would have a maturity period of approximately 2.069 years (assuming a September 30, 2023 signing date). For the time being, to estimate the maturity period, AidData has taken the average of these two extremes (2.1935 years) and have coded it as the maturity period of this record. 3. The average 3-month LIBOR for July, August, and September 2023 (when ABC and CCB joined the loan) was 5.62943333333%. Therefore, the interest rate has been coded as 5.62943333333% + 0.8% = 6.42943333333%.