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Overview

China Construction Bank contributes to a €50 million EUR syndicated loan to Icebank for refinancing purposes

Commitments (Constant USD, 2023)$9,767,097
Commitment Year•2003Country of Activity•IcelandDirect Recipient Country of Incorporation•IcelandOverseas Jurisdiction•GermanySector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 1, 2003
Last repayment (originally scheduled)
May 31, 2006

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

  • China Construction Bank Corporation (CCB)

Cofinancing agencies

Private Sector

  • Banco Popolare di Verona e Novara
  • BAWAG P.S.K. Bank Für Arbeit und Wirtschaft und Österreichische Postsparkasse Aktiengesellschaft (BAWAG P.S.K.)
  • Danske Bank A/S
  • DZ Bank AG
  • Erste Bank
  • Gjensidige NOR (Union Bank of Norway) (Sparebanken NOR)
  • Israel Discount Bank (IDB)
  • Raiffeisen Zentralbank Österreich A.G. (RZB)
  • Sampo Bank PLC

State-owned Banks

  • Baden-Württembergische Bank AG (BW-Bank)
  • Bayerische Landesbank (BayernLB)
  • Norddeutsche Landesbank Girozentrale (NORD/LB)

Receiving agencies

Private Sector

  • Icebank hf. (Sparisjóðabanki Íslands hf.)

Loan description

2003, China Construction Bank contributes to a €50 million EUR syndicated loan to Icebank for refinancing purposes

Interest rate (t₀)•2.655%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

In or around early June 2003, a syndicate of 13 banks — including the Frankfurt Branch of China Construction Bank Corporation (CCB) — signed a €50 million EUR syndicated loan agreement with Icebank hf. (also known as Sparisjóðabanki Íslands hf.) — a Icelandic commercial bank based in Reykjavík — for refinancing purposes. This loan carried a maturity period of three years and an interest rate of EURIBOR plus a margin of 45 basis points (bps). The proceeds were to be used by the borrower to refinance a €35 million EUR term loan committed in November 1999 and a €25 million EUR revolver tranche committed in December 1998. This was the borrower's largest ever facility. In addition to CCB, the following lenders contributed to the loan syndicate: Bayerische Landesbank (BayernLB), Danske Bank A/S, BAWAG P.S.K., Norddeutsche Landesbank Girozentrale (NORD/LB), Union Bank of Norway, DZ Bank AG, Union Bank of Norway, Baden-Württembergische Bank (BW-Bank), the London Branch of Banco Popolare di Verona e Novara, Erste Bank, Raiffeisen Zentralbank Österreich A.G. (RZB), Sampo Bank PLC, and Israel Discount Bank of New York (IDB). BayernLB was the mandated lead arranger. Danske joined in syndication as an arranger. BAWAG, NORD/LB, and Union Bank of Norway joined in syndication as co-arrangers. DZ Bank joined in syndication as a senior lead arranger. CCB Frankfurt Branch, LBBW, Banco Popolare di Verona e Novara, Erste Bank, RZB, and Samp Bank joined in syndication as lead managers. IDB joined in syndication as a manager. This loan was increased in syndication from its initial €30 million EUR.

Staff comments

1. The individual contributions of the 13 lenders to this €50 million EUR syndicated loan are unknown. For the time being, AidData has estimated the contribution of CCB by assuming each contributed an equal amount (€3,846,153.84615 EUR) to the loan syndicate. 2. A 6-month EURIBOR was assumed. The average 6-month EURIBOR for June 2003 was 2.084%. Therefore, the interest rate has been coded as % + 0.45% (45 bps) = 2.534%.