Narrative
Full Description
Project narrative
In April 2019, The Mauritius Commercial Bank Ltd (MCB) signed a $800,000,000 dual tranche, syndicated term loan facility agreement with a group of 24 Chinese and non-Chinese banks. The proceeds from the facility were to be used by the borrower for general corporate purposes, including trade finance. The facility consists of two tranches, with Tranche A having a tenor of 1 year (bullet repayment) and Tranche B having an initial tenor of 2 years [with a 1 year extension option at the borrower’s discretion (bullet repayment)]. Co-ordinators, Active Bookrunners and Mandated Lead Arrangers included Sumitomo Mitsui Banking Corporation Europe Limited and Standard Chartered Bank. Citi served as a Bookrunner. Mandated Lead Arrangers included Commerzbank Aktiengesellschaft, Filiale Luxemburg, Commerzbank Aktiengesellschaft, China Development Bank Hong Kong Branch, First Abu Dhabi Bank PJSC, Mizuho Bank, Ltd., MUFG Bank, Ltd., SBI (Mauritius) Ltd, and State Bank of India, Johannesburg Branch. Lead Arrangers included Bank of Baroda, London branch, Intesa Sanpaolo Bank Luxemburg SA, and KfW IPEX-Bank. Arrangers included Emirates NBD Bank (P.J.S.C), J.P. Morgan Securities plc, HSBC Bank (Mauritius) Limited, ING Bank N.V, and Société Générale. Participants include Deutsche Bank AG, London Branch, Investec Bank Limited, The National Bank of Ras Al Khaimah (P.S.C), AKA Ausfurkredit-Gesellschaft MbH, Banque Misr - Dubai Branch. Banque Misr SAE - Paris Branch, Caixiabank, SA, and The Korea Development Bank, London Branch. Mizuho Bank, Ltd. served as Facility Agent.
Staff comments
1. The size of CDB’s financial contribution to the syndicate is unknown. For the time being, AidData assumes equal contributions ($33,333,333) across the 24 lenders that participated in the syndicate. 2. AidData has estimated the loan’s maturity by taking the average maturity (1.5 years) across Tranche A and Tranche B. 3. Ahead of the launch of general syndication on January 30, 2019, the facility attracted significant commitments during a successful senior syndication phase. The facility initially launched at $500,000,000 (subject to increase). MCB subsequently elected to upsize the transaction to $800,000,000 in light of the significant commitments received. The deal was very well received in the syndicated loan market, with commitments in excess of $1 billion. This significant over-subscription necessitated the scaling back of total commitments, even after upsizing the facility to $800,000,000.