Overview

Bank of China contributes to a $163 million syndicated loan to Global Bank Corporation of Panama for refinancing purposes

Commitments (Constant USD, 2023)$14,911,481

Commitment Year•2018Country of Activity•PanamaDirect Recipient Country of Incorporation•PanamaOverseas Jurisdiction•PanamaSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Apr 1, 2018

Last repayment (originally scheduled): Mar 31, 2021

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

Bank of China (BOC)

Cofinancing agencies

Private Sector

Atlantic Forfaitierungs AG
Bancaribe Curacao Bank
Citigroup Inc.
Gunma Bank
JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
Mizuho Bank, Ltd.
NEC Financial Solutions
Taishin International Bank (Taishin Bank)

State-owned Banks

Export-Import Bank of the Republic of China, Taipei
KDB Asia Limited

Receiving agencies

Private Sector

Global Bank Corporation S.A. of Panama

Loan description

Bank of China contributes to USD 163 million syndicated loan to Global Bank Corporation of Panama for refinancing purposes

Grant element•7.3622%Interest rate (t₀)•4.2024%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

In early April 2008, a syndicate of 11 banks — the Panama branch of the Bank of China (BOC) — entered into a $163 million senior unsecured syndicated term loan agreement with the Global Bank Corporation of Panama — a private Panamanian bank — for refinancing purposes. This loan carried a maturity period of three years and an interest rate of LIBOR plus a margin of 175 basis points (bps). The proceeds were to be used to refinance debt. Citigroup, JPMorgan, and Mizuho Bank were the joint lead arrangers and bookrunners of the facility. BOC Panama Branch was a lead arranger. Participants were the Export-Import Bank of the Republic of China, Gunma Bank, KDB Asia, NEC Financial Services, Bancaribe Curacao Bank, Taishin International Bank, and Atlantic Forfaitierungs. The loan was increased from its $135.5 million target..

Staff comments

1. 1. A 6-month LIBOR rate was assumed. The average 6-month LIBOR rate for April 2018 was 2.49366%. Therefore, the interest rate has been coded as 2.49366% + 1.75% (175 bps) = 4.24366%. 2. The individual contributions of the 11 lenders to this $163 million USD syndicated loan are unknown. For the time being, to estimate the contributions of BOC, AidData has assumed each lender contributed equally ($14,818,181.8182 USD) to the loan syndicate.