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Overview

Bank of China contributes to $140 million syndicated loan facility to Moscow Narodny Bank (MNB) for general corporate and trade financing purposes

Commitments (Constant USD, 2023)$16,362,392
Commitment Year•2004Country of Activity•RussiaDirect Recipient Country of Incorporation•United KingdomSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 1, 2004
First repayment (originally scheduled)
Jul 1, 2007
Last repayment (originally scheduled)
Jul 1, 2007

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

  • Berliner Sparkasse Niederlassung der Landesbank Berlin AG (BSK)
  • HypoVereinsbank (HVB)
  • Natexis Banques Populaires

State-owned Banks

  • Hamburg Commercial Bank (HSOB) (Formerly HSH Nordbank AG)

Receiving agencies

Private Sector

  • Moscow Narodny Bank Limited (MNB)

Loan description

BOC contribution to $140 million syndicated loan facility to Moscow Narodny Bank (MNB) for general corporate and trade financing purposes

Grace period•3 yearsInterest rate (t₀)•2.8975%Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

In July 2004, 18 banks from 13 countries (including Bank of China) participated in a three-year, $140 million syndicated term facility (loan) agreement with Moscow Narodny Bank (MNB) for general corporate purposes and structured trade finance-related purposes. The borrower was expected to make a single bullet (principal and interest) payment based on an interest rate of LIBOR plus a margin of 1%. Bank of China, Bankgesellschaft Berlin, Bayerische Hypo- und Vereinsbank, HSH Nordbank and Natexis Banque Populaires served as mandated lead arrangers. ABC International Bank, Ahli United Bank, Bank r Arbeit und Wirtschaft, Bank of Tokyo Mitsubishi, Erste Bank, Magyar Kulkereskedelmi Bank, and Sumitomo Mitsui Banking Corporation Europe served as arrangers. Union National Bank, AKA Ausfuhrkredit-Gesellschaft, Banca Monte dei Paschi di Siena, Bank Sepah International, and Sabanci Bank served as co-arrangers. The Arab Investment Company served as lead manager.

Staff comments

1. Co-financing agency has been coded as Berliner Sparkasse Niederlassung der Landesbank Berlin AG (BSK) as this is the new name of Bankgesellschaft Berlin. 2. The all-in interest rate that applies to this loan (2.22%) was calculated by taking the average 6-month LIBOR rate in 2004 (1.220%) — the year when the loan agreement was finalized — and adding a 1% margin. 3. The precise monetary value of Bank of China's contribution is unknown. For the time being, AidData assumes equal contributions ($7,777,777) across the 18 members of the syndicate.