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Overview

ICBC contributes to a $185 million USD syndicated loan to Garanti Bank International for trade finance activities

Commitments (Constant USD, 2023)$13,297,487
Commitment Year•2018Country of Activity•NetherlandsDirect Recipient Country of Incorporation•NetherlandsSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 1, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Banca Transilvania S.A.
  • Banco Cooperativo Español, S.A.
  • Bankinter, S.A.
  • BMO Financial Group (Bank of Montreal)
  • Citibank, N.A.
  • Commerzbank Aktiengesellschaft (Commerzbank AG)
  • DenizBank A.Ş.
  • ING Group N.V.
  • Raiffeisen Bank International AG
  • Standard Chartered Bank PLC
  • UniCredit S.p.A. (formerly UniCredito Italiano S.p.A.)

State-owned Banks

  • Bayerische Landesbank (BayernLB)
  • First Abu Dhabi Bank PJSC (FAB)

Receiving agencies

Private Sector

  • GarantiBank International N.V. (Garanti BBVA International (GBI))

Loan description

2018 ICBC contributes to a $185 million USD syndicated loan to Garanti Bank International for trade finance activities

Interest rate (t₀)•3.40125%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

In or around July 2018, a syndicate of 14 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $185 million USD syndicated loan agreement with Garanti Bank International N.V. (GBI) — a Netherlands-incorporated bank and wholly-owned subsidiary of Turkiye Garanti Bankasi A.S., a Turkish private bank majority-owned by Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) — for trade finance activities. Tis loan carried a maturity period of LIBOR plus a margin of 90 basis point (bps). The proceeds were to be used by the borrower for trade finance-related activity. In addition to ICBC, the following lenders contributed to the loan syndicate: First Abu Dhabi Bank (FAB), Standard Chartered Bank Plc, Banca Transilvania S.A., Bayerische Landesbank (BayernLB), Citibank, Raiffeisen Bank International AG, DenizBank, Banco Cooperativo Español, S.A., Bankinter, S.A., Bank of Montreal, Commerzbank AG, ING Group N.V., and UniCredit S.p.A. ICBC, FAB, and Standard Chartered Bank were the leading participants. Banca Transilvania, BayernLB, Citi, Raiffeisen Bank International, and Denizbank served as senior participants. Banco Cooperativo Español, BankInter, Bank of Montreal, Commerzbank, ING, and UniCredit served as participants. FAB served as facility agent and Citi served as documentation agent. GBI self-arranged the loan, its annual syndicated loan which had been $250 million USD in 2018. Ticket sizes ranged from $3 million USD to $40 million USD.

Staff comments

1. The individual contributions of the 14 lenders to this $185 million USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($13,214,285.7143 USD) to the loan syndicate. 2. A 6-month LIBOR was assumed. The average 6-month LIBOR for July 2018 (this loan may have been made in June 2018, but AidData assumes July 2018 for the time being) was 2.51953%. Therefore, the interest rate has been coded as 2.51953% + 0.90% (90 bps) = 3.41953%.