Skip to content
AidData logo

Overview

ICBC Asia contributes to $179 million syndicated loan to Dana Petroleum for the acquisition of Bow Valley Energy

Commitments (Constant USD, 2023)$49,665,976
Commitment Year•2009Country of Activity•CanadaDirect Recipient Country of Incorporation•United KingdomOverseas Jurisdiction•Hong Kong (China)Sector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Apr 30, 2009
Start (actual)
Apr 30, 2009
End (actual)
Apr 30, 2009
Last repayment (originally scheduled)
Apr 30, 2012

Stakeholders

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

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia))

Cofinancing agencies

Private Sector

  • Bank of Scotland
  • Citigroup Inc.
  • DNB Bank ASA (formerly DnB NOR ASA)
  • Royal Bank of Canada (RBC)

Receiving agencies

Private Sector

  • Dana Petroleum Public Limited Company

Loan description

ICBC Asia contributes to a $179 million USD syndicated loan to Dana Petroleum for the acquisition of Bow Valley Energy

Interest type•UnknownMaturity•3 years

Narrative

Full Description

Project narrative

On April 30, 2009, financial close was reached on a deal in which a syndicate of five banks, including the Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia), entered into a $179 million USD ($213.33 million CAD) syndicated credit facility agreement with Dana Petroleum Public Limited Company — a British listed independent oil and gas exploration and production company based in Aberdeen, Scotland — for the acquisition of Bow Valley Energy Ltd. This loan carried a maturity period of three years and a final maturity date of April 30, 2012. In addition to ICBC (Asia), the following lenders contributed to the loan syndicate: Citigroup, DNB ASA, Royal Bank of Canada (RBC), and Bank of Scotland. Bank of Scotland served as mandated lead arranger, while the other lenders served as participants. The proceeds were to be used by the borrower for its $213.00 million USD ($253.85 million CAD; £122 million GBP) acquisition of all outstanding shares of Bow Valley Energy, which mainly operates in Western Canada and the United Kingdom; in addition to the debt, Dana Petroleum used $34.00 million USD ($40.52 million CAD) in equity for the acquisition. In February 2009, Dana Petroleum acquired to purchase Toronto Stock Exchange-listed Bow Valley Energy for a consideration of $218 million CAD (£121 million GBP), including assuming Bow Valley's estimated net debt of $175 million CAD, or $0.50 CAD per share, via a plan of arrangement under the Business Corporations Act of Alberta. The acquisition was completed on April 30, 2009. Bow Valley had a predominantly oil production, with more than 80% liquids and less than 20% gas. At the time of the acquisition, Bow Valley had four operational oil fields (Blane, Chestnut, Enoch, and Kyle) and one soon-to-be operational field (Ettrick) in the United Kingdom. Once Ettrick is online, it was expected that Bow Valley's assets to add approximately 7,800 barrels of oil equivalent (boe) per day to Dana's portfolio.

Staff comments

1. The individual contribution of the five lenders to this $179 million USD syndicated loan is unknown. For the time being, AidData has estimated the contribution of ICBC Asia by assuming that each lender contributed an equal amount ($35,800,000 USD) to the loan syndicate.