China Bank of Communications contributes $10 million to a $1 billion syndicated loan to Reliance Industries for capital expenditure purposes

Project narrative

On August 29, 2010, syndicate of over 30 banks — including China Bank of Communications (BoCom) — signed a $1.0 billion USD syndicated loan agreement with Reliance Industries Limited — an Indian multinational conglomerate — for capital expenditure purposes. The loan is split into a $500 million-equivalent five-year term loan and a $500 million-equivalent seven-year tranche. The first tranche carried an interest rate based on a floating rate plus a margin of 145 basis points (bps), while the second tranche carried an interest rate of LIBOR or EURIBOR (dependent on the currency of drawdown) plus a margin of 170 bps. China Bank of Communications contributed USD $10 million. Financial allocation saw the leads – Bank of America Merill Lynch, Bank of Tokyo-Mitsubishi UFJ, Barclays, BNP Paribas, Citigroup Global Markets Asia, DBS Bank, DnB NOR Bank, Export Development Canada (EDC), HSBC, Intesa Sanpaolo, Mizuho Corporate Bank, Standard Chartered Bank, and Sumitomo Mitsui Banking Corp – commit $49.5 million each. Lead arrangers Bank of Nova Scotia, Commonwealth Bank of Australia, Mega International Commercial Bank, Chinatrust Commercial Bank and Westpac contributed $30 million apiece, while co-arrangers Bank of East Asia and Maybank took $20 million each. Lead managers Bank of Taiwan lent $15 million and Taiwan Cooperative bank gave $12 million. Bank of Communications, Banca Monte dei Paschi di Siena, Bank of Kaohsiung, Export-Import Bank of the Republic of China, Hua Nan Commercial Bank (offshore banking branch), Hua Nan Commercial Bank (Singapore), Industrial Bank of Taiwan, Taiwan Business Bank and Taishin International Bank contributed $10 million apiece.